The Securities and Exchange Commission (SEC) has approved a two-year transition period for Nigerian fund managers to fully adopt mark-to-market valuation for fixed income securities, beginning September 22, 2025.
Under the new framework, bonds will no longer be valued primarily at amortised cost — their original purchase price adjusted over time — but at prevailing market prices, which more accurately reflect their current worth.
To ease the transition, the SEC has granted temporary forbearance on existing asset-allocation rules. Fund managers, who are normally required to maintain a 70:30 split between mark-to-market and amortised cost valuation, will now be allowed to operate a more flexible 50:50 balance during the two-year adjustment period. However, all new fixed-income purchases must immediately be marked to market.
The Commission has directed every fund manager to submit an implementation plan by October 2, 2025, outlining how they intend to achieve full compliance before the grace period expires.
In a bid to foster transparency and investor confidence, the SEC announced it will collaborate with the Fund Managers Association of Nigeria (FMAN) and other stakeholders to roll out investor education programmes on the valuation reform.
The regulator described the policy as a necessary step towards aligning Nigeria’s capital market practices with international standards, improving market efficiency, and strengthening investor protection.
 has approved a two-year transition period for Nigerian fund managers to ...){kind=link}