SEC, sole approving authority for securities—Adeosun

SEC, sole approving authority for securities—Adeosun 

Finance Minister, Mrs. Kemi Adeosun, has reiterated that the responsibility for the supervision, regulation and approval of issuance of securities in the local market for Nigeria’s internal debt rests solely with the Securities and Exchange Commission (SEC).

The minister stated this in a circular explaining that, in line with its powers as conferred by the Investment and Securities Act, No. 29 of 2007 (ISA), and the Rules and Regulations of SEC made pursuant to the ISA (the SEC Rules), the commission shall continue to have and discharge the sole responsibility for the supervision, regulation and approval of the issuance of such securities in the local market by federal government agencies, state and local governments, their agencies and corporations.

She said: “Henceforth, all applications in relation to the issuance of such securities by any of the aforementioned entities shall be made to the SEC for review and approval.”

Adeosun noted that the clarification became necessary in recognition of the need to engender proper management and coordination of Nigeria’s internal debt through issuance of securities in the local market and to promote better fiscal responsibility.

The circular added that, in discharging its responsibility, SEC shall collaborate with the Office of the Accountant-General of the Federation, the Federal Ministry of Finance and the Debt Management Office in carrying out a debt sustainability analysis with a view to encouraging fiscal responsibility by the various tiers of government, promoting an efficient sustainable capital market which engenders investor confidence.

“The final approval for such securities issuance shall be granted to the relevant applicant government or agency by SEC subject to a satisfactory debt sustainability analysis and compliance with the Fiscal Responsibility Act 2007, the ISA and SEC Rules.”