By Ikugbadi Oluwasegun
The Securities and Exchange Commission (SEC) of Nigeria has mandated that fund managers adopt mark-to-market (MTM) valuation for bonds, moving away from using original purchase costs, the agency announced Monday.
This directive aims to enhance transparency and align asset valuations with current market conditions, making Nigerian fixed income assets more comparable to global standards.
The MTM approach, which reflects the fair value of bonds based on real-time market factors like interest rate fluctuations and credit risk, is expected to improve pricing accuracy and liquidity.
These changes are critical for portfolio managers evaluating investments in emerging markets.
Fund managers have until September 2027 to fully implement MTM accounting for fixed income securities
The SEC has also required all fund managers to submit detailed compliance plans by October 2, outlining their transition strategy before the grace period concludes.
