The Securities and Exchange Commission (SEC) has clarified that fund and portfolio managers will be required to hold 0.1% of Assets Under Management (AUM) as regulatory capital, not 10% as initially stated in its January 16, 2026 circular.
Okay News reports that reliable sources within the SEC confirmed the correction following strong industry pushback. SEC Director-General Dr. Emomotimi Agama is expected to make the clarification official next week.
The adjustment significantly reduces the capital burden for large asset managers and averts potential disruption to the investment management sector.
Under the revised framework, Tier 1 fund and portfolio managers (those managing assets above N20 billion) require N5 billion in capital, with the additional 0.1% AUM rule applying to firms managing over N100 billion.
For a firm like Stanbic IBTC Asset Management with over N11 trillion in AUM, the requirement drops from N1.1 trillion (under the original 10% rule) to N11 billion.
Other capital thresholds remain: brokers N600 million, dealers N1 billion, broker-dealers N2 billion, issuing houses N2 billion to N7 billion depending on scope, and digital asset platforms N2 billion.
The SEC’s capital rule changes aim to strengthen market resilience, eliminate undercapitalised players, and reward firms with strong governance and scale.
Industry stakeholders welcomed the correction but continue to call for a more risk-sensitive, graduated model, arguing the N5 billion floor could still favour large, bank-affiliated firms and reduce diversity in the sector.
The changes form part of broader regulatory reforms, including the 2023 Digital Assets Rulebook, which formalised oversight of Virtual Asset Service Providers (VASPs).
The SEC has set a compliance deadline of June 30, 2027, giving operators 18 months to meet the new requirements.
 has clarified that fund and portfolio managers will be required to hold 0.1% of Assets Under Management (AUM) as regulatory capital, not 10% as initially stated in its January 16, 2026 circular.){kind=link}