Senate okays investments, securities Bill for third reading

The Senate on Wednesday approved the Investments and Securities (Repeal and Enactment) Bill 2024 for its third reading.

The approval followed the consideration and adoption of recommendations presented by the Senate Committee on Capital Market, chaired by Senator Osita Izunaso (APC, Imo West). The Committee said that the bill, once signed into law, will position the Securities and Exchange Commission (SEC) as the apex regulatory authority for Nigeria’s capital market.

Key objectives of the bill are aligned with emerging global best practices in investments and securities, focusing on protecting market integrity by preventing insider trading, market abuse, and fraudulent practices; enhancing investor protection through robust regulation of market governance and trade practices; modernising the regulatory framework to accommodate financial innovations, such as digital currencies, fintech, blockchain, and cryptocurrency transactions.

The report stated, “The existing law, though revolutionary at inception, now requires substantial updates to align with evolving global financial markets and regulatory frameworks, ensuring attractiveness to local and foreign investors.”

Other notable highlights include diversification of Financial Instruments (the bill introduces regulatory frameworks for derivatives, Exchange Traded Funds (ETFs), and other sophisticated financial products to broaden market depth); Clear Regulatory Roles (It delineates the roles of various regulatory bodies to enhance transparency, reduce overlaps, and improve the operational efficiency of the SEC); Support for Innovative Technologies (The bill provides a framework for the regulation of fintech activities, ensuring the integration of innovative technologies into Nigeria’s capital market) and Job Creation and Economic Growth (It aims to drive capital market growth, foster economic expansion, and create job opportunities through new market offerings).

Senator Izunaso reiterated that the bill’s passage marks a significant step in making Nigeria’s capital market more competitive globally.

Following a clause-by-clause consideration, the Senate unanimously passed the bill for third reading, signalling its readiness for presidential assent.