SEC Proposes N3B Capital for Forex Brokers in Nigeria

The Securities and Exchange Commission (SEC) proposed a regulatory framework for online forex trading and Contracts for Difference (CFDs) on September 1, 2025. The new rules establish minimum capital requirements of N3 billion for forex brokers and N5 billion for trading platforms.

These rules aim to regulate both domestic and offshore operators targeting Nigerian residents, introducing a 30% minimum local ownership requirement for licensed brokers. The framework categorizes licenses into three types: Online Forex Broker/Broker Dealer, Introducing Broker, and Technology/Platform Provider, each with specific capital thresholds.

Additionally, at least 30% of a broker's issued and paid-up share capital must be held by Nigerian citizens who serve as directors, with at least two directors, including the Managing Director/Chief Executive Officer, required to reside in Nigeria. The SEC will also require a Daily Price Spread Report from CFD brokers and plans to establish an Investor Protection Fund.

Existing operators will have three months to register and six months to comply with the new requirements.