Circular

The Securities and Exchange Commission wishes to notify all Capital Market Operators (CMOs) and the general public that the Federal Ministry of Finance has approved a further extension of validity period of the Investment and Securities (Exemption of State Governments etc. – ’’Exemption Order’’) Order 2019 by three years from December 27, 2022 to December 27, 2025.

CMOs and the general public may recall that the Exemption Order 2019 as initially published in the Official Gazette of the Federal Republic of Nigeria on December 27, 2019 was amended and re-published in the Gazette, dated May 31, 2021. The expiration of the re-published Exemption Order, following due consideration by the Federal Ministry of Finance, has now been amended and re-published in the Gazette, dated April 3, 2023.

The Order exempts all State Governments in Nigeria and the Federal Capital Territory (FCT) from the operation of the provisions of Section 223 of the Investment and Securities Act, No. 29, of 2007 to enable them raise funds from the Capital Market for infrastructural development. The decision to extend the Order has been taken in order to enable State Governments and FCT take more advantage of the opportunity to raise fund from the capital market.

To this effect, all relevant stakeholders are to be reminded that approval under this Exemption Order shall only be granted subject to satisfying the conditions for exemption outlined in the Exemption Order.

The Exemption Order, as amended and re-published in the Gazette dated April 3, 2023 can be downloaded here

Signed

 

Management

September 22, 2023