SEC committed to bolstering investor confidence — DG

Director-General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, has reaffirmed the Commission’s commitment to deepening transparency, bolstering investor confidence, and aligning Nigeria’s capital market with international best practices in financial reporting and sustainability disclosure.

Dr. Agama said the SEC’s transition to market-to-market (MTM) valuation of assets represents a major step in ensuring fair value reporting and enhancing investor trust across the market.

He explained that the policy was designed after extensive consultations with market operators and would be implemented in phases to allow for smooth adaptation.

ALSO READ: Niger, Benin Republic sign multi- billion dollars agriculture deal

“Timelines have been carefully considered, especially with the concerns being raised by market participants,” Agama stated in an interview at the weekend.

“For us at the SEC, it is important that while we introduce new regulations, we also listen to the market and find a common ground that allows everyone to move forward,” Agama added.

According to him, the October 2, 2025, deadline for the submission of implementation plans will enable the Commission to assess the readiness of institutions, while September 2027 remains the target for full transition to IFRS 9 standards.

“Requesting implementation plans is not a bureaucratic exercise,” Agama clarified, explaining that “It is to gauge institutional capacity, identify challenges, and ensure all operators move in the same direction toward compliance.”

He explained that while equity funds in Nigeria are already reported at fair value, the new policy specifically addresses gaps within the fixed income segment of the fund management industry.

“Nigeria has come of age, and we must do things according to global standards. IFRS 9 requires market-to-market valuation of assets, and we cannot be left behind among the community of nations,” he said.

Dr. Agama emphasized that the reform would make Nigerian assets more globally comparable, allowing investors to better assess market performance and risk.

“Our goal is to create a market that is internationally competitive. Adopting IFRS 9 enables compatibility among assets across borders and firmly positions Nigeria within the global investment ecosystem,” he stated.

Responding to concerns that market valuation could heighten short-term volatility, the SEC chief assured investors that the reforms were designed to strengthen, not destabilize, the market.

“Some have expressed concerns about volatility, but our intention is not to disadvantage investors. Over time, as the market adjusts, transparency will drive long-term confidence,” he noted.

Beyond IFRS 9, the SEC is also championing Nigeria’s early adoption of the International Sustainability Standards Board (ISSB) framework, which provides guidelines for climate and sustainability disclosures. Dr. Agama disclosed that Nigeria ranks among the first countries in Africa to embrace and begin implementing the ISSB standards.

“We pride ourselves on being first movers. However, we are also mindful of local realities. We are taking a gradual, balanced approach so that companies are not unduly burdened,” he said.

He explained that the Commission’s goal is to implement standards that attract capital rather than restrict it, ensuring that reforms drive sustainable growth.

“We will not implement standards that will lock companies out of access to funding. Our aim is to open the door to capital and promote long-term investment,” he affirmed.

Looking ahead, Dr. Agama expressed optimism about the market’s outlook for the final quarter of 2025, citing macroeconomic reforms and the enactment of landmark legislations such as the NIIRA 2025 and ISA 2025 as catalysts for investor confidence and market stability.

“Markets thrive on stability. With the micro- and macroeconomic reforms being championed by President Bola Ahmed Tinubu, the market is positioned for significant expansion. The NIIRA 2025 Act is a game changer that provides the framework for sustainable growth,” he stated.

Dr. Agama said that the SEC’s ongoing reforms, including the IFRS 9 transition and adoption of sustainability standards, form part of a broader agenda to globalize Nigeria’s capital market, enhance regulatory transparency, and foster inclusive wealth creation.

“We are on a path of progress. The President’s reform agenda is already taking shape, ensuring that Nigeria’s capital market becomes a global reference point for transparency, investor confidence, and good governance,” Agama added.