E-Financial
SEC, DMO Move to Collaborate to Boost Domestic Bond Market
The Securities and Exchange Commission (SEC) and the Debt Management Office (DMO) have agreed to work in synergy for the growth and development of Nigeria’s financial system, particularly, the domestic bond market.
This follows a courtesy call on Mr. Mounir Gwarzo, director general of SEC, by Dr. Abraham Nwankwo, director general of the DMO at the SEC Tower in Abuja recently.
At the meeting, Mr. Gwarzo applauded the DMO’s role in the ongoing restructuring of loans owed by state governments while emphasizing the need for closer collaboration between SEC and DMO to catalyze the development of the bond market, including the non-interest segment.
With the prevailing macroeconomic environment characterized by significant revenue squeeze facing both the Federal and state governments, the meeting could not have been timelier.
It would be recalled that the new administration had placed emphasis on maintaining the solvency of state governments in spite of their level of indebtedness and revenue profiles.
Having earlier approved a rescue package to help about 18 states meet up with salary obligations, the Federal government had directed a restructuring of loans owed by various state governments.
This loan restructuring effort is currently being coordinated by the DMO with support from the SEC. The courtesy visit therefore provided an opportunity for the two institutions to agree on a framework that allows for closer collaboration between the two government agencies to effectively deliver on President Muhammadu Buhari’s directive. So far, the DMO has been able to convert about N575 billion in state government loans into longer tenured debt instruments.
Mr. Mounir Gwarzo pledged further support from the SEC to ensure states enjoy a cost effective restructuring as well as reduced debt-servicing burden.
While outlining a number of initiatives which require closer collaboration with the DMO to achieve, the SEC Director General applauded the role DMO plays in sustaining the Irrevocable Standing Payment Order (ISPO) framework which has been critical for investor confidence in the domestic bond market. He urged the DMO to focus on conducting more robust debt sustainability analyses for the states in line with its mandate enshrined within the DMO Establishment Act 2003.
Mr. Gwarzo highlighted the contrasting fortunes of the different bond market segments noting that during the dormancy period of FGN-bonds, the corporate bond market was relatively vibrant.
The fortunes seem to have now reversed with sustained issuance of FGN-bonds coinciding with low activity in the corporate bond segment.
Both institutions agreed to work together to avoid this crowding-out effect by ensuring that states and companies also enjoy affordable access to long term capital.
With increasing interest from multilateral institutions in the domestic bond market, both SEC and DMO emphasized the need for synergy to efficiently coordinate such applications.
The World Bank’s private sector arm, International Finance Corporation (IFC), and the African Development Bank (AfDB), have both issued naira-denominated bonds within the past 2 years.
Both multilateral development finance institutions have also expressed interest in registering medium term note programmes that ensure periodic issuances to deepen the bond market.
The SEC boss entreated support from the DMO in the implementation of the 10-year capital market master plan which the SEC is currently implementing. In particular, he highlighted aspects of the master plan in which the DMO can play a critical role. Part of the master plan involves strategically developing and deepening the non-interest capital market in Nigeria.
Mr. Gwarzo therefore urged the DMO to consider issuing a sovereign Sukuk on behalf of the Federal government.
According to him, this will not only provide a benchmark for other issuers of Sukuk like state governments but will also be in line with global trends. Indeed, annual issuances have grown from $15 billion in 2008 to almost $120 billion in 2014.
This is growth is not only coming from the usual issuers like Malaysia, Saudi Arabia, the United Arab Emirates (UAE), Turkey and Indonesia. 2014 marked debut sovereign Sukuk issuances by countries such as the UK, Hong Kong and Luxemburg, including peer African countries like Senegal, South Africa.
Mr. Gwarzo expressed optimism in Nigeria’s potential to become a global leader in this specialized market and urged the DMO to contribute to actualizing that aspiration by issuing sovereign Sukuk for Nigeria.
Other important issues discussed at the meeting include the appreciable development of the secondary bond market, especially since the launch of the FMDQ platform. Mr. Gwarzo was pleased to note FMDQ’s progress while assuring Dr. Nwankwo that SEC will ensure the DMO is carried along on developments related to FMDQ.
At the end of the meeting, the two institutions agreed to strengthen the interagency team already in place and ensure that issues concerning the development of the bond market are jointly addressed.
Ecobank Nigeria has announced the successful repayment of the outstanding principal and accrued interest on its original $300 million Eurobond due February 16, 2026, marking a significant milestone in its liability management strategy and overall balance sheet strengthening efforts.
Following the full repayment of the Eurobond obligations, the Bank stated that it will now focus its funding initiatives primarily on the domestic capital markets. T
his strategic shift reflects growing confidence in Nigeria’s local debt market and aligns with Ecobank Nigeria’s long-term objective of optimising funding costs while deepening its participation in the domestic financial ecosystem.
“Going forward, Ecobank Nigeria will prioritise domestic credit ratings and local debt issuance to achieve its funding objectives,” stated Ogorchukwu Okwechime, Financial Controller, Ecobank Nigeria, in Lagos.
He added that the successful repayment reinforces the Bank’s commitment to maintaining a resilient balance sheet and sustaining investor confidence.
The tender offer was conducted with Renaissance Capital Africa (Renaissance Securities Nigeria Limited) acting as financial adviser and dealer manager, while Sodali & Co Limited served as tender agent.
The notes were originally issued by EBN Finance Company B.V., with limited recourse to the issuer, for the sole purpose of financing the purchase of the US$300 million 7.125 per cent Senior Note due 2026 issued by Ecobank Nigeria.
The transaction underscores Ecobank Nigeria’s proactive approach to liability management, prudent capital planning, and strategic alignment with evolving market conditions.
It further positions the Bank to leverage domestic funding opportunities while maintaining financial flexibility and operational stability.
Bank of Industry (BOI) has received approval from the Central Bank of Nigeria (CBN) to operate a Non-Interest Banking (NIB) Window.
Theodora Amechi, bank’s divisional head, Public Relations, said the regulatory nod allows BOI to launch non-interest banking operations, targeting underserved business segments with tailored financial solutions to support Nigeria’s industrial development.
BOI stated that NIB operations will promote inclusive growth, attract ethical funding, bolster the real economy, and finance customer assets and raw materials using approved non-interest products.
“This approval authorises BOI to commence Non-Interest Banking operations, positioning the bank to further advance Nigeria’s sustainable and inclusive industrial development through tailored financial solutions for underserved and high-impact business segments.
“The Non-interest Banking operations will enable BOI to drive inclusive growth, mobilise new ethical funding, expand support for the real economy, and align its financing activities with social and developmental objectives.
According to the bank, under this framework, BOI will be able to finance customers’ assets and raw materials using approved Non-Interest Banking products.
Announcing this milestone, Dr Olasupo Olusi, MD/CEO, Bank of Industry, said, “This licence marks a pivotal moment in the Bank’s journey of transforming Nigeria’s industrial sector. With this licence, we can reach a new category of borrowers who, before now, could not be served.”
He said the approval underscores the CBN’s confidence in the Bank’s commitment to responsible financing, adding that it will allow the bank to scale its operations, introduce innovative financing solutions, and deepen support for Micro, Small and Medium Enterprises (MSMEs), as well as other underserved segments critical to Nigeria’s sustainable economic growth.
“BOI’s decision to commence Non-Interest Banking operations is aimed at expanding access to ethical funding for businesses—particularly those that have traditionally avoided conventional interest-based financing.
This initiative opens new opportunities for ethically motivated and faith-sensitive enterprises, as well as segments of the economy that face challenges accessing traditional credit.
It enables such businesses to access much-needed financing and participate confidently in the formal financial system in a manner consistent with their values and business realities.
Bank of Industry (BOI) is Nigeria’s foremost Development Finance Institution, committed to driving industrial growth and inclusive economic development,” Olusi said.
Established in 1959 as the Investment Company of Nigeria (ICON) and reconstituted as Nigerian Industrial Development Bank (NIDB) under World Bank guidance in 1964.
The Bank assumed its current form in 2001 following the merger of the Nigerian Bank for Commerce and Industry (NBCI) and the National Economic Reconstruction Fund (NERFUND).
The Bank’s primary mandate is to provide financial assistance for the establishment and expansion of large, medium, small-scale, and micro projects.
Zenith Bank Plc has cautioned the public against fraudulent videos circulating online falsely claiming that Group Chairman Dr. Jim Ovia endorses an investment scheme called “Wealth Bridge.”
Jim Ovia
In a disclaimer issued Tuesday by its management, the bank described the videos—circulated via the “Greece Island” Facebook handle—as entirely fake, doctored content bearing no connection to Dr. Ovia, the bank, or its affiliates.
The materials falsely promise up to N2 million in weekly returns for a N380,000 investment, while baselessly alleging Central Bank of Nigeria (CBN) endorsement and redirecting viewers to a sham “Arise News” webpage with a signup portal.
“Our attention has been drawn to a doctored video and still pictures currently circulating on social media, purporting to depict the Group Chairman of Zenith Bank Plc (‘the Bank’) as endorsing an investment scheme called ‘Wealth Bridge’ on the ‘Greece Island’ Facebook handle and soliciting members of the public to engage in a business relationship with the so-called entity,” the statement read.
“This claim is entirely false and has no connection whatsoever to the Group Chairman, the Bank or any of its affiliate companies.”
Zenith Bank stressed that Dr. Ovia and the institution have no knowledge of or partnership with “Wealth Bridge,” “delicious sitee,” “AfriQuantumX,” “Stock market analyst 1,” or related entities. The public was warned that dealing with these schemes carries full personal risk.
Ravenewsonline urges vigilance against rising impersonation scams targeting financial institutions.
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