Abuja, Nigeria | September 22, 2025
Nigeria’s fixed-income market is set for a major shift as the Securities and Exchange Commission (SEC) implements a mark-to-market valuation framework for bonds, a move regulators say will deepen transparency, strengthen investor confidence, and align domestic markets with global standards.
The reform, which took effect this September, requires fund managers and institutional investors to value their bond portfolios based on prevailing market prices rather than historical cost. According to SEC officials, the shift will ensure more accurate pricing, reduce information asymmetry, and provide investors with a clearer picture of portfolio performance.
Market participants have described the development as “transformational,” noting that Nigeria’s bond market, valued at over ₦25 trillion, will benefit from improved liquidity and investor participation. Analysts believe the reform will particularly impact pension funds, mutual funds, and insurance firms that hold significant volumes of fixed-income securities.
Industry experts, however, caution that the transition may bring short-term volatility as asset managers adjust valuations, especially in a high-interest-rate environment. Still, many agree the long-term benefits outweigh the risks, as mark-to-market valuation encourages discipline, reduces hidden losses, and aligns with International Financial Reporting Standards (IFRS).
“This is a watershed moment for the Nigerian bond market,” said a senior SEC official. “Investors will now have access to real-time, transparent valuations, which is critical for deepening our capital markets and attracting both local and foreign participation.”
The reform comes at a time when Nigeria is stepping up efforts to attract foreign portfolio inflows, boost secondary market activity, and diversify sources of long-term financing for government and corporate issuers.
