SEC expresses readiness to perfect borrowing framework by Govts, Corporate institutions

Director General of Securities and Exchange Commission, SEC, Dr Emomotimi Agama said, it’s ready to perfect modalities to improve the regulatory frame­work of borrowing by govern­ments and corporate institutions.

He stated this in an interview, stressing that it has be­come important given the criti­cal role SEC plays borrowing in the financial system.

He said: “Improving the framework for borrowing is very important because borrowing is part of the financial system, and we can only make much of the move we want to make if there is enough funding. Hence, we want to be sure of sustainability in both government borrowing, municipal and state govern­ments particularly with the new Supreme Court order regarding the 774 local government areas receiving direct subvention from the Federal Government.

“It therefore becomes import­ant that we have in the manage­ment of such resources via stra­tegic and focused borrowing to help the developments in those sectors”.

For corporates, the SEC DG said the Commission is changing the landscape with the new rules on Central Counter Parties add­ing that the new rules on CCPs have become so critical for Nige­ria’s development, especially for corporates in raising capital.

“As a Commission we have established those new rules and they are going to be functional in 2025. We want to make borrow­ing a seamless and effortless process for Nigerian companies.

“It is very important that as we drive the growth of the Ni­gerian capital market, we also drive new products and new op­portunities for every Nigerian. Nigeria for a long time has been seen as a mono product market, but the Year 2025 will be different because we will continue to drive the process of introducing deriv­atives into the capital market.

“That is not possible without the laws and regulations that will help us do this better. To build confidence in derivatives trad­ing, we hope to provide a clear di­rection of these transactions. To build confidence in derivatives trading, we aim to provide a clear exemption of these transactions from general insolvency laws, creating a safer and more pre­dictable trading environment,” he stated.

Agama said the Commission is creating a safer trading envi­ronment, building confidence and attracting more players to the market, hence, it must pro­vide enabling regulations and laws.