Capital market regulators, the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE) have predicted the existence of only 10 stock brokering houses by 2020.
The regulators made the prediction at the 11th stockbrokers yearly conference.
According to NSE Deputy Director-General, Mr Lance Musa Elakama, the capital market could have just 10 stock brokering houses in 13 years time.

According to him, going by the current capital base fixed by the apex regulator of the market, the Securities and Exchange Commission (SEC) stock brokering houses will have no choice than the banking sector.
Echoing him, the Director General of SEC, Musa Al-Faki said that the relevance of a stockbroker by 2020 would be on the basis of the level of capacity in terms of financial strength and professional know-how.
Al-Faki said SEC had always been at the Vanguard of collaborating with other stakeholders in its resolve to provide the market with the requisite capacity to address the imminent challenge.

"In the area of financial and structural capacity, the current trend among others, in developed markets is through direct fund injection or by way of mergers, takeovers and acquisitions.
"These forms of re-engineering will crystallise into better managed institutions with better prospects and continuously strengthen the stockbroker to acquire the necessary resources to offer efficient and reliable services even beyond year 2020".

The Chairman, Senate Committee on Capital market, Mr Ganiyu Solomon urged the apex regulator to review the N1 billion minimum capital base for stock broking firms. He said while it was imperative for operators to recapitalise, the policy should be made flexible to accommodate many operators.

"This policy, if implemented, might impact negatively on small investors," he said.
In April the Federal Government in line with its policy to reform the financial sector , directed that stock broking firms should raise their minimum paid up capital from the current N70 million to N1 billion.
SEC which enforces the rules and regulations in the market and the Federal Government gave the market till December 31, 2008 to jack up their funds.

The House of Representatives Committee on Capital Market also called for the suspension of the recapitalisation.