Nigeria’s Central Bank has cautioned the Senate not to create crisis as the upper legislative Chamber attempts to amend the Act establishing the Securities and Exchange Commission, SEC.
This is even as the Senate through its Committee on Capital Market organisaed a one day public hearing on Investment and Securities Bill, 2024 on Thursday in Abuja.
The proposed bill seeks for an act to repeal the Investment and securities Act 2007 and enact the Investment and Securities Bill, 2024.
In his submission on the proposed law, the representative of CBN , Dr Tukur Galadima kicked against absolute powers being proposed for SEC over Public Companies, which according to him , involved some financial institutions that are under the control of CBN .
He also kicked against provision in the proposed law for using cash to buy securities .
” You cannot use cash to buy securities . It is contrary to provisions of law against money laundry “, he said .
The CBN representative also advised the committee to remove the provision in the proposed law , specifically section 193 allowing for Investment in multi currency, saying ” the issue of currency is strictly with CBN”.
He however said that left for observations raised , the CBN like other critical stakeholders , is in support of planned new law for regulation of the investment and securities and generally the capital market .
But in his presentation , the Director – General of SEC , Dr Emomotimi Agama , said the move by the Senate committee to repeal the Investment and Securities 2007 Act and enact a new one, was very necessary .
” 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 the Nigeria economy in the area of commodity market , cryptocurrency etc “.
Other Stakeholders who made presentations at the public hearing , supported the bill .
Some of the stakeholders are ÷ PENCOM, Nigeria Deposit Insurance Corporation ( NDIC), Chartered Institute of Stockbrokers , Capital Market Solicitor Association, Institute of Capital Market Registrars etc .
In his closing remarks , the Chairman of the Committee , Senator Osita Izunaso , said the SEC bill was very sensitive being 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 Accountant – General of the Federation , to join the committee at this stage to avoid refusal of presidential assent when eventually passed for third reading by both chambers of the National Assembly .
