SEC Proposes N7.5bn Capital for Free Trade Zone Listings

The Securities and Exchange Commission (SEC) has proposed a minimum paid-up share capital of N7.5 billion for companies seeking to raise funds in Nigeria's Free Trade Zones (FTZs). This proposal, outlined in a circular issued by the SEC, aims to strengthen investor confidence and establish clear eligibility requirements for companies operating within Nigeria's FTZs.

The SEC's proposal includes a rule to amend Section 95(1)(f) of the Investment Securities Act (ISA) 2025, requiring companies to have at least a three-year operational track record and a minimum of two years spent operating independently within the FTZ. Entities licensed by the Nigeria Export Processing Zone Authority and the Oil and Gas Free Zone Authority will qualify, provided they meet government tax compliance and reporting obligations.

The new framework is designed to promote investment and trade, with FTZs enjoying tax incentives and the ability to repatriate profits freely. This initiative reflects a growing interest in Nigeria's FTZs, highlighted by the recent inauguration of the Irel Tower, a nine-storey commercial building in the Lekki Economic Corridor.