Nigeria’s Securities and Exchange Commission has proposed new rules to guide public offerings of securities by Free Trade Zone Entities. The move is aimed at strengthening regulatory oversight and expanding participation in the capital market by companies operating within the country’s free trade zones.
A Free Trade Zone Entity refers to a business established within a designated free trade zone and licensed by the relevant Free Zone Authority. These zones are created to promote investment, boost exports, and provide a more flexible operating environment for businesses.
Under the proposed framework, such entities seeking to raise funds from the public will be required to comply with specific disclosure and regulatory standards set by the commission. The rules are expected to ensure transparency, protect investors, and align the operations of these entities with broader market regulations.
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The commission says the initiative reflects its commitment to deepening the capital market while maintaining investor confidence. Stakeholders are expected to review the proposal as part of a consultative process before the rules are finalised and implemented.
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