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The Securities and Exchange Commission (SEC) is set to engage stakeholders on proposed rules for online forex trading and contracts for differences (CFDs) at the 2026 Lagos Finance Summit.
The Regulation Forum, scheduled as part of the summit from October 14 to 16 at the Landmark Event Centre in Victoria Island, Lagos, will bring together forex brokers, introducing brokers, CBN-licensed banks, technology providers, legal practitioners and traders.
SEC proposes higher capital requirements for forex brokers
Musa Kabul, Head of Marketing and Promotion at the Lagos Finance Summit, said in a statement on Monday that the proposed framework is designed to strengthen oversight of Nigeria’s retail forex and CFD market through higher capital requirements, stricter operational standards and stronger safeguards for customer funds.
Under the draft rules, market-making forex brokers would be required to maintain a minimum paid-up capital of N3 billion. Straight-through-processing and electronic communication network brokers would face a minimum capital requirement of N2 billion.
Technology and platform providers supporting the market would also be required to meet a proposed minimum capital threshold of N5 billion.
Kabul said the Regulation Forum would give market participants an opportunity to review the proposals and provide input before the SEC finalises the 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,” Kabul said.
Draft rules remain subject to consultation
The proposed rules were published by the SEC on September 1 following the enactment of the Investments and Securities Act 2025. However, the framework has not yet taken effect and remains subject to stakeholder consultations and consideration by the Commission.
A central element of the proposal is the segregation of client funds. Under the framework, brokers would be required to hold customers’ money in separate accounts maintained with banks licensed by the Central Bank of Nigeria.
The SEC is also proposing increased oversight of offshore trading platforms that target Nigerian residents. This could expand the Commission’s regulatory reach to operators serving Nigerian traders from outside the country.
Proposed transition period for existing operators
For existing market participants, the draft framework proposes a three-month period to apply for registration and six months to meet the new requirements after the rules come into effect.
According to Kabul, the proposed capital thresholds could have significant implications for existing operators and businesses seeking to enter Nigeria’s retail forex and CFD market.
The consultation process will therefore be important in determining how the final framework addresses capitalisation, registration, customer-fund protection and the regulatory treatment of offshore platforms targeting Nigerian residents.
The Regulation Forum is expected to produce a written industry response to the SEC, providing market participants with a formal channel to submit concerns and recommendations on the proposed regulatory framework.
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