Central Bank of Nigeria (CBN) has advised the Senate not to create tension between itself and the Securities and Exchange Commission (SEC), regarding the new Investment and Securities Bill 2024.

The advice was given, yesterday, during a public hearing held by the Senate Committee on Capital Market, focused on a proposed law that would repeal the Investment and Securities Act of 2007 and replace it with a more modern framework.

Dr Tukur Galadima, representing the CBN, voiced concerns about certain provisions within the bill granting SEC broad powers over public companies, including those operating as financial institutions and under the regulatory oversight of the CBN.

He also objected to a clause permitting cash transactions for securities purchases, highlighting that such provisions could conflict with anti-money laundering laws.

Another contentious point for the CBN was Section 193 of the proposed bill, which allows for investments in multiple currencies. Galadima recommended removal of the provision, stressing that currency issues should remain solely under CBN’s purview.

Despite these reservations, the CBN representative expressed general support for the proposed legislation, emphasising the importance of updating Nigeria’s regulatory framework for investments and securities.

In his remarks, SEC Director-General, Dr Emomotimi Agama, highlighted the bill’s significance, stating that its passage would elevate Nigeria’s standing in global capital markets and enhance areas, like commodities and cryptocurrency. He stressed that implementing the bill before year-end could bring vital changes to Nigeria’s economic landscape.

The public hearing was attended by other stakeholders, including the Nigeria Deposit Insurance Corporation (NDIC), PENCOM and the Chartered Institute of Stockbrokers.

Chair of the Senate Committee on Capital Market, Senator Osita Izunaso, emphasised the importance of the SEC bill as a foundational law for the capital market and reassured stakeholders that the committee would finalise the draft by the following week.

He also urged the accountant general’s office to be involved at this stage to ensure smooth passage and prevent issues with presidential assent when the bill reached the third reading.