Nigeria’s SEC urges founders to raise capital locally, raises crypto firm capital requirement to ₦2B

SEC advocates for local capital raising

Nigeria’s Securities and Exchange Commission (SEC) is encouraging local founders to explore alternative capital-raising methods, including crowdfunding, debt markets, and eventual stock market listings. Emomotimi Agama, Director-General of the SEC, emphasized these routes as viable pathways for growth without immediate equity dilution.

Agama highlighted the Nigerian Capital Market Master Plan 2.0, which aims to grow the market’s capitalisation to ₦750 trillion ($549 billion) by 2036. The market has already expanded from ₦55 trillion ($40.3 billion) in early 2024 to ₦162 trillion ($118.6 billion), signaling momentum in local investor participation. The Dangote Petroleum Refinery’s initial public offering (IPO), which attracted investors from 54 African countries, was cited as a recent success story.

Crypto firms face stricter capital rules

The SEC has raised the minimum capital requirement for crypto exchanges and custodians to ₦2 billion ($1.46 million), up from ₦500 million ($366,000). The new rule, announced earlier this year, sets a compliance deadline of June 30, 2027. Agama stated that the increased threshold is intended to ensure firms can sustain their operations and mitigate risks.

Under the SEC’s Accelerated Regulatory Incubation Programme (ARIP), launched in June 2024, no crypto platform has yet received full licensing. Quidax and Busha, two prominent players, received provisional licences in August 2024 but remain under review. The SEC has not charged firms any fees during this period while assessing risks in their business models.

Agama clarified that regulatory oversight of digital assets is shared between the SEC and the Central Bank of Nigeria (CBN). The SEC regulates digital asset activity outside payments, while the CBN handles payment-related aspects. Firms operating under SEC rules must comply or risk violations, with ignorance of the law dismissed as an excuse.

What this means

Lazyfounder analysis — our interpretation, not reported fact.

For Nigerian founders and fintech operators, the SEC’s push for local capital raising presents both an opportunity and a challenge. The emphasis on crowdfunding, debt markets, and eventual listings could reduce reliance on foreign funding, but the path to compliance—especially for digital asset firms—is becoming more demanding.

The increased capital requirements for crypto exchanges and custodians signal a broader shift toward stricter oversight, mirroring global trends. Founders in this space must now weigh the costs of meeting these thresholds against the risks of operating without full licensing. The SEC’s stance also underscores the importance of early engagement with regulators, particularly in a shared oversight environment like Nigeria’s.

For startups eyeing public listings, the growth in Nigeria’s market capitalisation and the success of recent IPOs like Dangote Petroleum Refinery may offer encouragement. However, the SEC’s long-term targets suggest that the local bourse could become more competitive, with higher standards for transparency and governance.

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