ALN Nigeria | Aluko & Oyebode Capital Markets Insight

The ALN Nigeria | Aluko & Oyebode Capital Markets Insight is a quarterly publication offering in-depth updates on the laws, regulations, and activities shaping the Nigerian capital markets. This Q4 2024 edition explores critical developments, regulatory updates, and proposals across various segments of the market.

Key highlights include:

1. SEC Re-Exposes Rules on Digital Assets

The Securities and Exchange Commission (SEC) has proposed amendments prohibiting anonymity-enhanced cryptocurrencies and requiring SEC approval for all digital asset advertisements. These rules aim to ensure transparency and compliance in the growing digital asset space.

2. New Framework for Short-Term Commodity-Linked Notes (STCLNs)

The SEC introduced a draft framework for STCLNs, expanding investment opportunities with minimum issue sizes and mandatory SEC approvals for listing on commodities exchanges.

3. Amendments to Rules on Corporate Bonds

Proposed changes include mandatory ratings for bond issuers and credit enhancement for special purpose vehicles (SPVs) without financial records.

4. Senate Approves Insurance Reform Bill

The comprehensive bill consolidates multiple insurance laws, increases minimum capital requirements, and promotes regulatory alignment for the Nigerian insurance industry.

5. PENCom Lifts Restrictions on Commercial Paper Investments

Following SEC’s draft rules, Licensed Pension Fund Administrators can now invest in commercial papers with enhanced regulatory oversight.

6. Annual Registration Renewal for Capital Market Operators

Capital Market Operators must now demonstrate membership in trade groups as part of their annual SEC registration renewal process.

7. NAICOM Mandates Claim Settlement by Insurers

Insurers are required to clear outstanding claims by year-end to enhance industry credibility and align with a 10-year strategic plan.

8. NGX Proposes Changes to Trading License Holders’ Rules

Proposed revisions to block investment rules emphasize transparency, approval processes, and pricing justification for major equity transactions.

9. CBN and MOFI Flag Overlaps in Investment and Securities Bill

The Central Bank of Nigeria and the Ministry of Finance Incorporated raised concerns about the SEC’s expansive regulatory powers proposed in the Investment and Securities Bill.

10. NAICOM to Release Insurtech Guidelines

NAICOM’s draft guidelines aim to support insurtech startups and enhance technological efficiency in the insurance industry.

11. Proposed Amendments to Supervisory Fees for CIS

The SEC proposes recalibrating supervisory fees from Net Asset Value (NAV) to total Assets Under Management (AUM) to enhance transparency.

For a comprehensive analysis of these updates, including detailed insights and their potential impact on stakeholders, download the full report below.

Download the Full Q4 2024 Capital Markets Insight (PDF)