Senate Passes Investments and Securities Bill for Third Reading
The Senate on Wednesday passed the Investments and Securities (Repeal and Enactment) Bill 2024 for third reading. The bill aims to overhaul the existing regulatory framework of Nigeria’s capital market and align it with global best practices.
The bill, which was considered and adopted following recommendations from the Senate Committee on Capital Market, chaired by Senator Osita Izunaso (APC, Imo West), seeks to establish the Securities and Exchange Commission (SEC) as the primary regulatory authority for the Nigerian capital market.
The committee’s report highlighted that the current law, though revolutionary at its inception, requires substantial updates to reflect the changes in global financial markets and regulatory practices. This update is designed to make the Nigerian capital market more attractive to both local and foreign investors.
Key aspects of the bill include:
- Addressing issues such as market integrity, insider trading, and fraudulent practices.
- Introducing a regulatory framework for emerging technologies like digital currencies, fintech, blockchain, and cryptocurrency transactions, thus promoting innovation in the market.
- Strengthening investor protection, preventing market abuse, and reinforcing regulatory measures.
- Supporting the development of new financial instruments such as derivatives and Exchange-Traded Funds (ETFs) to diversify investment options.
The bill also delineates the roles of regulatory bodies to reduce overlap and improve the operational efficiency of SEC, ensuring a transparent and efficient regulatory environment.
Once enacted, the bill is expected to foster economic growth, enhance Nigeria’s capital market, and create job opportunities.
