SEC Proposes N5bn Capital Threshold for Forex Trading

The Securities and Exchange Commission (SEC) has proposed new regulations for online foreign exchange and Contracts for Difference (CFD) trading, introducing a minimum paid-up capital of N5 billion for technology and platform providers targeting Nigeria. Published on September 1, 2026, the draft Rules on Online Forex Trading and Contracts for Difference aim to formalize the largely retail-driven forex market under licensing, supervision, and investor protection requirements.

The SEC plans to regulate online forex brokers/broker-dealers, introducing brokers, and technology/platform providers. Market-making brokers would need N3 billion in paid-up capital, while STP/ECN brokers would require N2 billion.

Introducing brokers would need N30 million for individuals and N150 million for corporate entities. The SEC also mandates at least 30% Nigerian ownership for licensed operators, with key directors residing in Nigeria.

Offshore platforms targeting Nigerian clients would also be subject to these rules. If approved, existing operators would have three months to register and six months for compliance, with the SEC retaining authority to suspend or revoke licenses for serious violations.