According to various media reports, the Securities and Exchange Commission (SEC) alongside the Debt Management Office (DMO) have reached an agreement to collaborate for the growth and development of Nigeria’s financial system, especially the domestic bond market.
This decision was made after Dr. Abraham Nwankwo, director general of the DMO, paid a courtesy visit to the director general of the SEC, Mr. Mounir Gwarzo, at the SEC Tower in Abuja recently.
According to a report by Nigeria CommunicationsWeek, Gwarzo applauded the DMO’s office for its role in the restructuring of government debt while emphasizing the need for better collaboration between both agencies so as to speed up the development of the bond market.
Gwarzo also pledged further support from the SEC to ensure that states enjoy effective debt restructuring as well as a functioning debt reduction plan.
Other important matters laid on the table at the meeting included the appreciable development of the secondary bond market, particularly since the launch of the FMDQ platform.
Gwarzo said he was pleased to identify with the FMDQ’s progress whilst assuring the SEC DG that the DMO will be carried along on developments relating to the FMDQ.
The current government has placed an emphasis on states remaining solvent irrespective of their debt profile and the DMO has since commenced a debt restructuring effort, with help from the SEC. A few month ago, the Federal Government approved a rescue package to aid 18 states which had failed to meet up with salary obligations.