Operators in Nigeria’s capital market have called on the Securities and Exchange Commission (SEC) to extend the ongoing recapitalisation deadline from June 2027 to December 2027, citing election-year uncertainties and the pressure of multiple financial-sector reforms.
The request was made at the Capital Market Academics of Nigeria (CMAN) Q1 2026 Roundtable, themed “Deconstructing the New Minimum Capital Requirements for Regulated Capital Market Entities in Nigeria.”
Under the SEC’s revised regulations, broker-dealers are now required to maintain N2 billion, brokers N600 million, dealers N1 billion, while sub-brokers face increased thresholds: digital sub-brokers N100 million and corporate sub-brokers N50 million, up from N10 million previously.
Speaking at the roundtable, CMAN President Professor Uche Uwaleke stressed that while recapitalisation is vital, the proposed June 2027 timeline is challenging, particularly during a general election year when investor behaviour tends to be defensive.
“There is no doubt that recapitalisation is necessary, but extending the deadline would better align with market realities,” he said.
Supporting the call, Dr Bayo Olugbemi, past president of the Independent Capital Market Registrars and the Chartered Institute of Bankers of Nigeria, noted that industry consultations showed broad support for a 24-month implementation period.
Yvonne Akintonide, MD/CEO of Regius Asset Management, highlighted the cumulative pressure from simultaneous recapitalisation exercises across banks, insurance firms, and pension fund administrators, urging SEC to provide breathing space for capital market operators.
First vice president of the Chartered Institute of Stockbrokers, Fiona Ahimie echoed the sentiment, warning that operators could be conflicted between servicing clients and raising capital, making an extension the practical solution.
Also, Professor Chris Kalu, research fellow at Cowry Assets Management, proposed harmonising the recapitalisation window with the Central Bank of Nigeria’s banking sector recapitalisation, suggesting a period from January 2026 to January 2028.
However, former SEC executive commissioner Barrister Charles Udora cautioned against excessive prolongation, citing that past recapitalisation efforts (2008–2015) suffered delays that exposed operators to market risks, particularly those holding shares rather than cash.
Beyond timing, stakeholders raised concerns about proportionality. Olugbemi noted that some increases—ranging 100% to 3,000%—appear disproportionate to the risk profile of certain operators, including registrars, trustees, and niche players.
He emphasised that while raising capital is legitimate, regulation must balance market growth and stability.
The roundtable added with a shared view that extending the deadline would ease pressures, align reforms with sector realities, and support sustainable growth in Nigeria’s capital market.