The Director-General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, has said that Nigeria’s transition to market valuation of assets in the fixed income segment of the capital market is a critical step towards fair value reporting, transparency, and restoring investor confidence.

Speaking at the weekend, Dr. Agama explained that the reform aligns with the International Financial Reporting Standard (IFRS 9) and was shaped through extensive engagement with market participants to ensure a smooth transition.

According to a statement issued by the SEC on Sunday, the Director-General said timelines were carefully structured to reflect both market realities and industry feedback. “Timelines have been carefully considered, especially with the concerns being raised by market participants,” he said.

“For us at the SEC, it is important that while we try to introduce new rules and regulations, we also listen to the market and say, okay, how do we meet at the junction where we can all agree to move forward?”

He disclosed that the Commission has set October 2, 2025, as the deadline for the submission of implementation plans by capital market operators. These plans, he said, will help the SEC evaluate the preparedness and capacity of each institution ahead of the September 2027 target for full transition to IFRS 9.

“Requesting implementation plans is not a bureaucratic exercise—it’s to gauge capacity, identify challenges, and meet operators at the point where we can all achieve compliance with one purpose and one goal,” Agama stated.

The SEC boss explained that while equity funds in Nigeria are already reported at fair value, the reform will align the fixed income funds segment with global practice. “Equity funds are already reported at fair value. The aspect of the fund management that was not aligned with international best practice was in the fixed income funds space, and that is what this policy alignment covers,” he noted.

He said the transition would ensure that Nigeria’s capital market operates in accordance with international standards, enabling investors to accurately assess asset values in real time.

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

According to him, the reform will make Nigerian assets comparable on the global stage, improving investor assessment and competitiveness. “Our goal is to create a market that is internationally competitive,” he stated. “Adopting IFRS 9 enables ease and compatibility among assets from different nations, clearly positioning Nigeria within the global market space.”

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Responding to concerns that market valuation could introduce short-term volatility, Dr. Agama assured that the reform is designed to strengthen the system rather than destabilize it. “Some have expressed concerns about volatility, but our intention is not to disadvantage Nigerian investors,” he said.

“It is to expose them to global standards and transparency. Over time, as the market adjusts, these concerns will ease off and everyone will benefit from a more transparent and credible system.”

Beyond the IFRS 9 transition, Dr. Agama disclosed that the SEC is leading Africa in adopting the International Sustainability Standards Board (ISSB) framework, which focuses on climate and sustainability disclosures. He said Nigeria was among the first countries to embrace the ISSB standards, while tailoring implementation to local realities.

“We pride ourselves as performers—first among nations to accept and adopt the ISSB standards. But we are not oblivious to our contextual issues. We are taking a gradual approach so that our companies are not unduly burdened,” he said.

He clarified that the Commission’s broader objective is to introduce standards that attract, not restrict, capital flows. “We will not implement standards that will shut companies out of capital. Instead, we are implementing those that will help bring in capital and promote sustainable growth,” he stated.

Looking ahead, the SEC Director-General expressed optimism about the Nigerian capital market’s performance in the last quarter of the year, citing the government’s macroeconomic reforms and new legislative frameworks such as the Nigerian Investment and Industry Regulatory Act (NIIRA) 2025 and Investment and Securities Act (ISA) 2025 as key catalysts for stability and growth.

“Markets do not operate in a vacuum; they thrive on stability. With the micro- and macro-economic stability being championed by President Bola Ahmed Tinubu, the market is positioned for significant growth. The NIIRA 2025 is a game changer that provides the framework for sustainable expansion,” he said.

Dr. Agama gave assurances of the SEC’s commitment to promoting transparency, investor confidence, and adherence to international best practices in financial reporting.

He concluded that the SEC’s ongoing reforms, particularly the IFRS 9 transition and the adoption of sustainability standards, form part of a broader agenda to globalize Nigeria’s capital market and ensure wealth creation through a resilient and transparent financial system.

“We are on a path of progress and growth. The President’s reform agenda is already taking shape, ensuring that Nigeria’s capital market becomes a global reference point for transparency, regulation, and investor confidence,” he said. (The Nation)