Godswill Michael
Nigeria is setting its sights on 2027 for a full transition to the International Financial Reporting Standard (IFRS 9).
This is part of efforts to deepen transparency, strengthen investor confidence, and align the country’s capital market with global best practices.
The Director-General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, made this known in an interview over the weekend, reaffirming the Commission’s resolve to promote fair value reporting and real-time market valuation of assets.
Agama explained that the shift to market-to-market (MTM) valuation in the fixed income space was designed to ensure that asset values truly reflect prevailing market realities, thereby boosting investor trust. He noted that the reform emerged after extensive engagements with market participants.
“Timelines have been carefully considered, you know, especially with the concerns being raised by market participants,” he said. “For us at the SEC, it is important that while we try to introduce new rules and regulations, we also listen to the market and say, okay, how do we meet, how do we meet at the junction where we can all agree to move forward?”
The SEC chief stated that the October 2, 2025, deadline for the submission of implementation plans will allow the Commission to evaluate each institution’s readiness for the transition, while September 2027 remains the target date for full adoption of IFRS 9.
“Requesting for implementation plans is not a bureaucratic exercise—it’s to gauge capacity, identify challenges, and meet operators at the point where we can all achieve compliance with one purpose and one goal,” Agama said.
He clarified that while equity funds are already reported at fair value, the fixed income segment has lagged behind, hence the policy adjustment to bring it in line with international standards.
“Nigeria has come of age, and we must be seen to be doing things according to global standards. IFRS 9 requires market-to-market valuation of assets, and we cannot be left behind among the committee of nations,” he stressed.
Agama said the transition would make Nigerian assets globally comparable and improve how investors assess performance across markets. “Our goal is to create a market that is internationally competitive,” he added. “Adopting IFRS 9 enables ease and compatibility among assets from different nations, clearly positioning Nigeria within the global market space.”
Responding to concerns that the shift could expose investors to short-term volatility, the SEC boss explained that the intention is to strengthen—not destabilize—the market. “Some have expressed concerns about volatility, but our intention is not to disadvantage Nigerian investors,” he said. “It is to expose them to global standards and transparency. Over time, as the market adjusts, these concerns will ease off and everyone will benefit from a more transparent and credible system.”
Beyond IFRS 9, Agama noted that Nigeria is also among the first countries in Africa to adopt the International Sustainability Standards Board (ISSB) framework, underscoring the SEC’s leadership in sustainability reporting and climate disclosures.
“We pride ourselves as performers—first among nations to accept and adopt the ISSB standards. But we are not oblivious of our contextual issues. We are taking a gradual approach so that our companies are not unduly burdened,” he said.
According to him, the Commission’s goal is to attract capital through policies that promote growth rather than restrict it. “We will not implement standards that will shut companies out of capital. Instead, we are implementing those that will help bring in capital and promote sustainable growth,” he affirmed.
Looking ahead, Agama expressed optimism about the Nigerian capital market’s outlook in the final quarter of 2025, citing the government’s ongoing macroeconomic reforms and new legislations such as the NIIRA 2025 and ISA 2025 as catalysts for renewed investor confidence.
“Markets do not operate in a vacuum; they thrive on stability,” he said. “With the micro- and macro-economic stability being championed by President Bola Ahmed Tinubu, the market is positioned for significant growth. The NIIRA 2025 is a game changer that provides the framework for sustainable expansion.”
Agama concluded that the SEC’s reform agenda—anchored on the IFRS 9 transition and adoption of sustainability standards—aims to globalize Nigeria’s capital market, enhance transparency, and build a resilient financial system that supports wealth creation.
“We are on a path of progress and growth. The
