Nigeria’s SEC Considers Approval of Social Bonds

Nigeria’s SEC Considers Approval of Social Bonds

By Bashir Olanrewaju

Nigeria’s Securities and Exchange Commission (SEC) is considering approving bonds for ” identifiable social objective(s)” aimed at segments of the population.

The regulator, in furtherance of the effort, has published proposed rules on its website that will undergird their issuance.

Qualifying projects for social bonds must “directly aim to address or mitigate a specific social issue and/ or seek to achieve positive social outcomes,” SEC said in the statement on its website.

Eligible projects include basic services such as clean water, sanitation and electricity provision. Others include education, housing, vocational services  food security and job creation, among others.

The projects are expected to target the official poor, vulnerable or marginalised communities including migrants, the displaced and other poorly served populations.

“An issuer shall provide to the Commission and any Exchange where the bond is listed, at least annually, a Social Bond Report containing the list of the projects and assets to which proceeds have been allocated, for the duration of the bond,” SEC said in its list of reporting requirements.