Introduction
On 22 September 2025, the Securities and Exchange Commission of Nigeria (SEC) approved a two-year transition to mark-to-market (MTM) valuation for fixed income securities held by collective investment schemes. The reform requires all new fixed income securities purchases to be valued at market price immediately, allows a hybrid valuation mix during the transition period for existing bonds (gradually increasing the share measured at market price), and temporarily relaxes fund asset-allocation thresholds to ease adjustment. Fund managers are required to submit their implementation plans to the SEC by 2 October 2025.
A two-year transition period is allowed, during which a hybrid approach (combining mark-to-market and amortised cost) is permitted. During the transition period, the permitted ratio of MTM to amortised cost for existing fixed income securities portfolios is relaxed from 70:30 to 50:50. By 2027, full adoption is expected, with all fixed income securities required to be measured at fair value.
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