Nigeria’s Securities and Exchange Commission (SEC) has ordered fund managers to fully transition to real-time mark-to-market (MTM) valuation for fixed income securities by September 2027, in a policy shift aimed at boosting transparency and aligning the local market with global standards.
The regulator confirmed that the implementation will begin on 22 September 2025, with a two-year transition period. During this phase, fund managers will be permitted to apply a 50:50 ratio of MTM and amortised cost valuation, a reduction from the current 70:30 structure. However, SEC clarified that all new bond purchases must be valued using the MTM method from the start. This was highlighted in a report by MarketScreener.
Fund managers have been instructed to submit detailed compliance plans to the regulator by 2 October 2025, outlining how they intend to meet the 2027 deadline. The SEC also revealed that it will collaborate with the Fund Managers Association of Nigeria (FMAN) to roll out investor education programmes designed to smooth the transition. This was reported by Nairametrics.
Analysts suggest that while the move could introduce greater volatility into fund valuations, especially for bonds acquired during periods of lower interest rates, the reform is expected to improve price discovery, market liquidity, and comparability of Nigerian fixed income assets with international benchmarks. Insights published by MarketScreener noted that the shift is part of broader market deepening measures by the regulator.
The reform underscores Nigeria’s push to modernise its capital markets and attract more foreign investment, as policymakers seek to strengthen financial sector resilience and competitiveness.
