The Nigerian Senate on Tuesday passed for a second reading, a bill seeking repeal the Investment and Securities Act 2007 and enact the Investments and Securities Bill 2024.
The Bill sponsored by Bamidele Opeyemi, the Senate Leader and co-sponsored by Osita Izunaso, Chairman, Senate Committee on Capital Market aims to establish the Securities and Exchange Commission as the apex regulatory authority for the Nigerian capital market, as well as regulation of the market to ensure capital formation.
The Bill also aims to protect investors, maintain fair, efficient and transparent market as well as reduction of systemic risks.
The legislation proposes stiffer penalties, registration/regulation of exchanges and financial market infrastructures; regulation of new businesses; mergers, take-overs and corporate restructurings; collective investment schemes; commodities ecosystem; investors protection fund; among others.
In his lead debate, Izunaso argued that the overriding purport of the proposed legislation is to strengthen the capacity of the regulatory Commission for the effective performance of its statutory mandate as well as reposition this vital sector of our economy for national economic transformation.
He explained that the legislation which aligns with global dynamics will protect the integrity of the security market against all forms of market abuse and insider dealing; Prevent unauthorised, illegal, unlawful, fraudulent and unfair trade practices, relating to securities and investments; and ensure the development of the capital market and facilitate capital formation for economic development.
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He further said the Bill seeks to register and regulate securities depository companies, clearing and settlement companies, custodians of assets and securities, credit rating agencies, and such other agencies and intermediaries, etc.
“It is apposite to reiterate that the passage of this Bill will form part of the renewed Hope Agenda of the current administration, geared towards economic diversification initiatives, aimed at exploiting all available opportunities for national development”, he said.
Majority of Senators supported the legislation. Adamu Aliero, the Senator representing Kebbi Central enthused that the Bill will boost investors confidence in Nigeria’s capital market and would help the country achieve the $1 trillion economy.
Adetokumbo Abiru, the Chairman Senate Committee on Banking, Finance and other Financial Institutions said strengthening the capital market would attract stable fundingcrucial for driving economic development.
“We have high interest rate and short term funding provided by most banks. To enhance the capacity of the capital market will help attract stable funding to drive economic development”, he said.
Godswill Akpabio, the Senate President applauded a proposed objective of the Bill to reduce systemic risks, saying, “People will come when they know the risk has been reduced to the barest minimum.”
After majority of lawmakers voted in support of the Bill, Akpabio referred it to the Senate Committee on Capital Markets for further legislative action and to report back in four weeks.
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