SEC gives market operators two-day deadline to submit Q2 ownership, capital flows return

By Olamide Akintunde

The Securities and Exchange Commission (SEC) has directed all Capital Market Operators (CMOs) to submit their second-quarter (Q2) 2026 Ownership Structure and Capital Flows Returns on or before July 10, as part of efforts to strengthen Nigeria’s external sector statistics.

The directive was contained in a circular titled “Request for the Submission of Q2 2026 Ownership Structure and Capital Flows Returns,” issued on July 8, giving operators just two days to comply.

The requirement applies to registrars, brokers/dealers, fund managers and other regulated capital market operators.

According to the Commission, the quarterly returns are essential for compiling Nigeria’s Balance of Payments (BoP) and International Investment Position (IIP) statistics.

“This exercise forms part of ongoing efforts to improve the quality, coverage and reliability of Nigeria’s external sector statistics,” the SEC stated.

Under the directive, operators are expected to provide detailed information on cross-border investment activities during the second quarter of 2026.

The required disclosures include new equity and debt investments involving Nigerian residents and non-residents, foreign portfolio investment holdings in Nigerian companies.

Equity and debt holdings of non-residents in Nigerian entities and those of Nigerian residents in foreign entities.

Investments arising from mergers, acquisitions and other business combinations involving resident and non-resident entities.

Equity and bond investments held abroad by Nigerian resident companies.

Investments by multinational corporations in Nigeria’s capital market.

The Commission emphasised that the reporting exercise is a continuous quarterly obligation rather than a one-off requirement.

The SEC has provided separate reporting templates for different categories of operators through designated online forms.

Under the guidelines Registrars are required to submit ownership structure data for Nigerian companies using a dedicated reporting form.

Brokers/Dealers and Fund Managers are required to submit three separate returns covering: Domestic transactions executed on behalf of non-resident investors.

Foreign transactions carried out for Nigerian resident investors.

The current US dollar value of foreign investments managed on behalf of Nigerian residents.

The Commission advised operators to carefully review the guidance accompanying each reporting template and ensure that submissions are complete, accurate and filed within the stipulated deadline.

The SEC acknowledged firms that have consistently complied with previous reporting requirements, describing their cooperation as an important contribution to a national data-gathering exercise.

The reporting requirement comes at a time when Nigeria’s capital market is attracting increased international attention following its recent inclusion on the S&P Dow Jones Indices’ 2027 Frontier Market Watchlist.

Accurate capital market data play a critical role in compiling the country’s Balance of Payments and International Investment Position statistics, which are closely monitored by multilateral institutions, sovereign rating agencies and foreign investors in assessing Nigeria’s macroeconomic performance.

With the July 10 deadline approaching, compliance teams across registrars, brokerage firms and asset management companies now face a narrow window to collate, validate and submit their second-quarter data in line with the Commission’s reporting requirements.