The Securities and Exchange Commission (SEC) has intensified efforts for a tougher capital and operational requirements for online forex brokers and contracts-for-differences (CFD) operators as part of efforts to strengthen regulation of Nigeria’s retail trading market.
The proposed rules, which include a minimum paid-up capital of N3 billion for market-making forex brokers and N2 billion for straight-through-processing (STP) and electronic communication network (ECN) brokers, will be examined at a dedicated forum during the Lagos Finance Summit.
The summit, scheduled for October 14 to 16 at the Landmark Event Centre, Victoria Island, Lagos, is expected to bring together forex brokers, introducing brokers, CBN-licensed banks, technology providers, legal practitioners and traders to deliberate on the proposed regulatory framework.
In a statement, the Head of Marketing and Promotion of the Lagos Finance Summit, Musa Kabul, said the proposals are designed to strengthen oversight of the retail forex and CFD market through higher capital requirements, stricter operational standards and enhanced protection of customers’ funds.
Technology and platform providers serving the market would also be required to maintain a proposed minimum capital of N5 billion.
Kabul said the Regulation Forum would provide stakeholders with an opportunity to scrutinise the proposals, raise concerns and contribute to the development of an effective regulatory framework.
“The Regulation Forum will provide a platform for market participants to examine the proposed rules, raise their concerns and make recommendations that can contribute to the development of an effective regulatory framework,” he said.
The draft rules, published by the SEC on September 1 following the enactment of the Investments and Securities Act 2025, have yet to take effect and remain subject to stakeholder consultations and consideration by the Commission.
Another major provision of the proposed framework is the mandatory segregation of client funds, requiring brokers to keep customers’ money in separate accounts with banks licensed by the Central Bank of Nigeria.
The SEC is also proposing greater oversight of offshore trading platforms targeting Nigerian residents, a move that could extend its regulatory reach beyond operators based in the country.
Under the proposed transitional arrangements, existing operators would have three months to apply for registration and six months to comply with the new requirements after the rules become effective.
Kabul said the proposed capital thresholds could have significant implications for existing operators and prospective entrants into Nigeria’s retail forex and CFD market.
The consultation process is expected to shape the final provisions on capital requirements, registration, customer-fund protection and the regulation of offshore platforms serving Nigerian traders.