The Securities and Exchange Commission (SEC) is set to improve its regulatory framework for borrowing by government entities and corporate organizations.
In an interview, SEC Director General Emomotimi Agama emphasized the importance of borrowing for sustaining the financial system and supporting economic growth. He noted the need for strategic management, especially after the Supreme Court ruling mandating direct federal allocations to Nigeria’s 774 local government areas.
“Improving the framework for borrowing is crucial. It enables us to fund important projects, particularly for state and municipal governments under the new Supreme Court order,” Agama stated.
He also discussed how the SEC is transforming borrowing for corporate organizations by introducing new rules for Central Counter Parties (CCPs). These rules are set to become operational in 2025, aimed at making borrowing easier for Nigerian companies.
Agama further revealed that the SEC is working to diversify the Nigerian capital market, which has traditionally focused on a single product. The introduction of derivatives trading in 2025 is a key part of this effort. He assured that new laws and regulations would support this growth, aiming to attract more investors and players to the market.
“By providing exemptions for derivatives transactions from general insolvency laws, we aim to build a safer and more predictable trading environment,” Agama concluded.
The SEC remains committed to strengthening the capital market, fostering sustainable economic development, and creating new opportunities for Nigerians.