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Nigeria Plans to Start Securities Lending to Increase Trading

  • Regulator targeting short-selling in effort to boost volumes
  • Nigeria’s SEC in talks with pension funds on framework
Traders At The Nigerian Stock Exchange
Photographer: Ruth McDowell/Bloomberg

The Nigerian Securities and Exchange Commission is in talks with institutional investors and other regulators to allow securities lending in an effort to reignite flagging trading volumes.

The SEC wants to start “trading activities such as short-selling, hedging and arbitrage,” acting Director-General Mary Uduk said in an email. The measures are required for Nigeria’s capital markets to better attract inflows “and be more liquid.”