By Nathaniel Zacchaeus, Abuja
Stakeholders at a public hearing held in the Senate yesterday on the proposed bill to repeal the Investment and Securities Act 2007 and enact the Investment and Securities Bill 2024 have described the move as a welcome development
The public hearing was organised by the Senate Committee on Capital Market and chaired by Senator Osita Izunaso.
Some of the stakeholders at the event are the National Pension Commission (PENCOM), the Nigeria Deposit Insurance Corporation (NDIC), the Chartered Institute of Stockbrokers (CIS), the Capital Market Solicitor Association (CMSA), and the Institute of Capital Market Registrars, among others.
The Representative of the Central Bank of Nigeria (CBN), Dr Tukur Galadima, supported the amendment but opposed the proposal for the SEC to have absolute powers over Public Companies.
Galadama said some of the affected companies are financial institutions under the CBN’s control.
He also kicked against a particular provision in the proposed law that encourages using cash to buy securities.
“You cannot use cash to buy securities. It is contrary to law provisions against money laundering,” he said.
The CBN representative also advised the committee to remove section 193 of the Bill, allowing multi-currency investments.
“The issue of currency is strictly the responsibility of the CBN,” he added.
Galadama noted that, apart from his observations, the CBN supported the proposed law regulating the Investment and securities markets and, generally, the capital market.
The Director-General of the SEC, Dr Emomotimi Agama, said the Senate committee’s move to repeal the Investment and Securities 2007 Act and enact a new one was necessary.
Agama said, “For Nigeria to get it right among the comity of nations as far as the capital market is concerned, the proposed law needs to be passed before the year runs out.
“The proposed bill, when passed into law, would turn around Nigeria’s economy in the commodity market and cryptocurrency, among others.”
The Chairman of the Committee, Senator Osita Izunaso, said the SEC bill was very sensitive because it is the ombudsman law covering the entire capital market.
He assured all the stakeholders that the final draft of the bill would be ready by next week and urged the office of the Accountant General of the Federation to join the committee to accelerate presidential assent when it is eventually passed for third reading by both chambers of the National Assembly.
