On the 7th of June, 2021, the Securities and Exchange Commission (“SEC”) (“the Commission”) published its proposed Rule (“Rule”) on Social Bonds in the Nigerian Capital Markets. The Rule, according to the Commission, was borne out of the increased volume of social bonds issued in 2020 (85$ billion), which was 8 times higher than the volume issued in 2019 ($10.6) billion, and the key rise in ethical investments by investors as well as the government.  

In this short article, we have highlighted the key elements of the Rule and the possible impacts of social bonds in the Nigerian Economy.