KEY POINTS
- The SEC authority and currency provisions are CBN opposed.
- Finance Ministry is concerned about regulatory gaps and SEC board protocols.
- The bill is however defended by SEC as key to modernizing Nigeria’s capital markets.
The Central Bank of Nigeria (CBN) and Ministry of Finance are raising serious issues over the proposed Investment and Securities Bill of 2024, which seeks to bring Nigeria’s capital market regulations into the 21st century. Such concerns were expressed Thursday during a public hearing held at the National Assembly complex.
Objections by key stakeholders
But Dr. Tukur Galadima, representing the CBN, objected to provisions granting SEC the expanded authority over the financial institutions, contending it could result in friction with CBN’s oversight. He challenged sections that permit cash transactions for purchases of securities on the grounds that they contravene anti money laundering laws, and sections that enable investments in various currencies, saying: ‘The issue of currency is purely the preserve of the CBN.’
On his part, Finance Minister Wale Edun, did not mince words, as he did through Ali Mohammed, Director of the Home Finance Department, who expressed reservations over the bill’s potential to erode ministry’s oversight. He also faulted the removal of a requirement that the SEC report market updates to the Finance Minister and doubted that SEC board resignations could go ahead without involving the Finance Minister.
The Bill’s objectives
Government is committed to deliver the Bill’s objectives for making significant legislative change to safer, more effective, and more efficient policing.
However, the bill has the backing of other key stakeholders such as the Nigeria Deposit Insurance Corporation (NDIC), the superannuation body, Pension Compensation Management (PENCOM), as well as the Chartered Institute of Stockbrokers. However, SEC Director General Dr. Emomotimi Agama who defended the bill argued that it would strengthen competitiveness of Nigeria’s capital market.
Agama said this proposed law must pass before year end if Nigeria is to make something out of the country globally because it carries a lot of transformative potential for the country in terms of commodity markets and cryptocurrency among others.
Stakeholders assured by senate
Senator Osita Izunaso, Chairman, Senate Committee of Capital Markets, assured stakeholders that their input would be reflected in the final draft which comes out early next week. He also proposed that Accountant General involvement will serve to avoid the time that will be expended before the presidential assent is obtained.
