Nigeria Cracks Down on Forex Brokers with Draconian New Rules

Nigeria's Securities and Exchange Commission (SEC) has released draft rules that would require market-maker forex broker-dealers to hold N3 billion ($2 million) in paid-up capital. This proposal aims to protect retail traders from high-risk activities.

The new rules also cap retail leverage on crypto CFDs at 1:2, which is lower than the current ratios offered by offshore brokers active in Nigeria. The ban on binary options removes that product class entirely for retail traders.

Offshore brokers serving Nigerian residents will be subject to these regulations and must obtain a Category-A licence within six months or face blacklisting and prosecution.