The Securities and Exchange Commission has revealed plans to improve the regulatory framework for borrowing by governments and corporates, with a focus on sustainability and efficiency in the financial system. The Director-General of the Commission, Dr Emomotimi Agama, emphasized the crucial role of borrowing in advancing development across various sectors of the economy.
The SEC aims to ensure sustainability in government borrowing, especially at municipal and state levels, following a directive from the Supreme Court for direct subventions to 774 local government areas from the Federal Government. Agama stated that enhancing the borrowing framework is essential to secure sufficient funding for economic progress.
In the corporate sector, Agama highlighted the introduction of new rules for Central Counter Parties as a significant move in reshaping Nigeria’s borrowing landscape. These rules, set to be operational by 2025, seek to simplify borrowing for Nigerian companies and promote capital market growth.
Agama underlined the Commission’s commitment to making borrowing a seamless process for Nigerian firms, aiming to diversify the capital market and introduce derivatives by 2025. He stressed the importance of legal and regulatory measures in fostering confidence in derivatives trading and ensuring a secure environment for transactions.
The SEC’s efforts are anticipated to fortify Nigeria’s financial system, boost market confidence, and facilitate broader economic development.