SEC is sole approving authority for issuance of securities — FG

Hauwa Noroh Ali, Abuja

The Federal Government has stated that the Securities and Exchange Commission (SEC) has the sole responsibility for the supervision, regulation and approval of issuance of securities in the local market for Nigeria’s internal debt.

According to a statement by the Director, Information, Ministry of Finance, Mr  Na’inna Dambatta on Thursday in Abuja, the Minister, Mrs Kemi Adeosun, has signed a circular to that effect.

“SEC 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

“Henceforth, all applications in relation to the issuance of such securities by any of the aforementioned entities shall be made to SEC for review and approval, ’’according to the statement.

it added that the clarification became necessary in recognition of the need to engender proper management and coordination of Nigeria’s internal debt.

This, the statement stated would be through issuance of securities in the local market to promote better fiscal responsibility.

According to the circular, in discharging its responsibility, SEC will collaborate with the Office of the Accountant-General of the Federation, the Federal Ministry of Finance and the Debt Management Office (DMO) in carrying out a debt sustainability analysis.

“This is with a view to encouraging fiscal responsibility by the various tiers of government and 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.”