1. Securities and Exchange Commission, Nigeria (SEC) REPORT OF THE IMPLEMENTATION SUB - COMMITTEE ON THE 10 - YEAR NON-INTEREST CAPITAL MARKET MASTER PLAN April 2016

2. TERMS OF REFERENCE 1 1 Liaise with the National Pension Commission (“PENCOM”) on the inclusion of non-interest instruments as allowable instruments for pension fund assets. 2 Work with the Central Bank of Nigeria (CBN) on: the conferment of liquid asset status on non-interest capital market products and the issuance of non-interest T-Bills, Bonds, CPs Bas etc. 3 Consider other opportunities to actualize the Committee’s objectives.

3. PROGRESS REPORT- PENCOM 2 Expansion of the scope of allowable instruments for pension fund assets to include non-interest instruments and funds. Aim This has been reflected in the draft regulation which is expected to be approved by the PENCOM Board when constituted. Current Situation Upon approval, PFAs will be able to invest pension fund assets in non-interest instruments and funds. Effect of Guidelines

4. PROGRESS REPORT - CBN 3 Provide liquidity management tools for non- interest financial institutions by the issuance of short-term NICM instruments by the CBN. Aim Available non-interest instruments issued by the CBN suffer from two major defects: nil/low returns or non-compliance with the shari'ah standards set by the operators’ shari'ah boards Current Situation The Committee had a working meeting with the CBN during the quarter The CBN promised to liaise with operators to fine tune the existing liquidity instruments. Action/ Next Steps

5. PROGRESS REPORT - CBN 4 Extension of liquid asset status to Sukuks Aim The current CBN guidelines for granting liquid asset status to state government bonds does not expressly refer to Sukuks. Current Situation The Committee had a working meeting with the CBN on its proposal to expand the conventional guidelines to accommodate Sukuks The CBN said the draft guidelines were still undergoing review internally Action/ Next Steps

6. PROGRESS REPORT -SECONDARY MARKET LIQUIDITY 5 Promote secondary market liquidity for NICM instruments Aim NICM instruments are only tradable on the Nigerian Stock Exchange Current Situation The FMDQ has submitted draft listing guidelines to the SEC for approval Action/ Next Steps

7. OTHER INITIATIVES: ENGAGE PROSPECTIVE ISSUERS 6 Sensitize key corporate organizations and state governments across the geo-political zones Target The Commission & Sokoto State Government held a high-level roundtable to sensitise key stakeholders on tapping into the NICM The SEC is working with the DMO to build capacity on NICM Action Hold another roundtable in the South-West geo political zone Continue the engagement with the DMO towards a sovereign issuance Next Step

8. THANK YOU 7