Don’t Create Friction Between Us And SEC, CBN Tells Senate

Don’t Create Friction Between Us And SEC, CBN Tells Senate

The Central Bank of Nigeria (CBN) has urged the Senate to avoid creating unnecessary friction and crises between the bank and the Securities and Exchange Commission (SEC) over the proposed Investment and Securities Bill, 2024.

During a public hearing on the bill, held on Thursday in Abuja and led by Senator Osita Izunaso (APC, Imo West), Chairman of the Senate Committee on Capital Market, CBN representative Dr. Tukur Galadima expressed concerns about the proposed bill granting absolute powers to SEC over public companies, particularly those under the regulation of the CBN.

The bill aims to repeal the Investment and Securities Act 2007 and enact a new Investment and Securities Bill, 2024.

Dr. Galadima criticized provisions in the bill, particularly those regarding the use of cash to purchase securities, calling it a violation of anti-money laundering laws. He also opposed the section allowing for investments in multi-currency, stating that the issue of currency is strictly within the purview of the CBN. He recommended that this provision be removed from the bill.

Despite these concerns, Galadima emphasized that the CBN, along with other key stakeholders, supports the overall goal of the bill to regulate Nigeria’s investment and securities sector and strengthen the capital market.

In his presentation, Dr. Emomotimi Agama, Director-General of SEC, welcomed the Senate committee’s efforts to repeal the 2007 Act, stating that the proposed law would be crucial for positioning Nigeria’s capital market among the world’s top players. He added that the law, if passed, would bring significant economic benefits, particularly in areas like the commodity market and cryptocurrency.

Other stakeholders, including PENCOM, the Nigeria Deposit Insurance Corporation (NDIC), the Chartered Institute of Stockbrokers, the Capital Market Solicitors Association, and the Institute of Capital Market Registrars, also expressed support for the bill.

Closing the session, Senator Izunaso acknowledged the sensitivity of the bill, noting that it covers the entire capital market as the primary ombudsman law. He assured stakeholders that the final draft of the bill would be ready by next week and urged the Accountant-General of the Federation’s office to engage with the committee to prevent any potential delays or rejections once the bill reaches the third reading in both chambers of the National Assembly.