Nigeria’s Securities and Exchange Commission (SEC) has proposed new rules for online foreign exchange and Contracts for Difference (CFD) trading, bringing brokers, introducing brokers, technology providers and offshore operators serving Nigerian residents under a formal regulatory framework. The proposals include new capital requirements of up to ₦5 billion (US$3.78 million) and registration obligations for firms operating in the market.

The draft Rules on Online Forex Trading and Contracts for Difference were issued under Nigeria’s Investments and Securities Act (ISA) No. 2 of 2025. The framework is intended to cover both domestic firms and offshore operators that provide online forex or CFD services to people living in Nigeria.

SEC sets different capital requirements

Under the proposed framework, online forex brokers would face different minimum capital requirements depending on their business model.

B-book or market-making brokers would need at least ₦3 billion ($2.27 million) in paid-up capital, while brokers operating through Straight-Through Processing (STP) or Electronic Communication Network (ECN) models would require ₦2 billion ($1.51 million).

Technology and platform providers would face a minimum capital requirement of ₦5 billion ($3.78 million), the highest threshold included in the proposal. Introducing brokers (IBs) would also be subject to financial requirements, with individual IBs required to maintain ₦30 million ($22,700) and corporate introducing brokers ₦150 million ($113,500).

The proposed requirements would create separate regulatory categories for online forex brokers or broker-dealers, introducing brokers, and technology and platform providers.

Offshore brokers included in scope

The SEC proposal also seeks to address offshore companies that target Nigerian clients.

The rules would apply to operators outside Nigeria if they list the country as a supported market on their website, mobile application, trading platform or client onboarding portal. Offshore firms could also fall within the framework if they allow Nigerian residents to open or maintain trading accounts.

The proposed rules extend to firms that use local marketing channels to reach Nigerian clients. These include Nigerian influencers, affiliates, introducing brokers, training providers, seminars, webinars, social media pages and online campaigns.

The SEC has also identified Nigeria-specific features, such as the use of the naira, local contact details or Nigeria-focused promotional material, as potential indicators that an offshore operator is targeting the domestic market.

Affiliates and IBs face regulatory requirements

The inclusion of introducing brokers and affiliates gives the proposal wider relevance across Nigeria’s FX ecosystem.

Introducing brokers would become regulated entities under the framework rather than operating solely as commercial partners for brokers. Offshore operators could also face regulatory obligations where they maintain representatives, agents, affiliates, introducing brokers or customer support channels in Nigeria.

This approach would bring client acquisition networks closer to the regulatory framework governing the brokers they represent.

CFD and forex services under one framework

CFDs are derivatives that allow traders to speculate on the price movement of an underlying asset without owning it. They can cover instruments such as currencies, shares, indices and commodities.

By establishing specific rules for online forex and CFD services, the SEC is seeking to place firms serving Nigerian retail traders within defined licensing and supervisory categories.

The proposals are not yet final rules. The SEC is seeking comments on the draft framework before it is adopted. If implemented, the requirements would apply across Nigeria and could also affect offshore operators that actively provide online forex or CFD services to Nigerian residents.

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