• The Securities and Exchange Commission (SEC) is set to improve the regulatory framework for borrowing by governments and corporates.
• The improved framework aims to ensure sustainable borrowing practices and facilitate capital raising for Nigerian companies.
• New rules on Central Counter Parties (CCPs) will be introduced in 2025 to support corporate borrowing.

The Securities and Exchange Commission (SEC) has expressed its commitment to strengthening the regulatory framework for borrowing by governments and corporate entities. This move aims to promote sustainable borrowing practices and foster economic growth across various sectors.

Objectives of the Improved Framework

The framework aims to ensure sustainable borrowing, facilitate corporate borrowing, and support the development of the Nigerian capital market.

New Rules on Central Counter Parties (CCPs)

The SEC has established new rules on CCPs, which will become operational in 2025. These rules will play a critical role in Nigeria’s development, especially for corporates in raising capital.

Derivatives Trading Development

The SEC plans to introduce derivatives trading in 2025, providing new opportunities for Nigerian companies and investors. The Commission will establish clear exemptions for these transactions from general insolvency laws, creating a safer and more predictable trading environment.