Nigeria’s Securities and Exchange Commission has released sweeping new regulations for forex and CFD brokers operating in the country, introducing some of Africa’s strictest retail trading rules. The framework, announced Tuesday, completely prohibits binary options trading and bans finfluencer tactics including social media displays of luxury lifestyles implying wealth from retail trading.
The rules establish distinct capital requirements based on business models: B-book market makers must hold minimum paid-up capital of two million US dollars or ten percent of total liabilities, while A-book brokers require one point three million dollars. All operators must maintain physical Nigerian offices with resident senior executives and ensure at least thirty percent local ownership.
Leverage caps vary sharply by asset class, with major forex pairs limited to one-to-four-hundred, minors and commodities to one-to-three-hundred, and cryptocurrency CFDs restricted to just one-to-two. The SEC also banned volume-linked bonuses, trading rebates encouraging excessive activity, and misrepresentation of execution models. Offshore brokers soliciting Nigerian clients without proper licensing face designation as illegal operators.
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International brokers targeting Nigerian retail clients must now choose between significant capital deployment for local licensing or complete market withdrawal.
Source: Finance Magnates