Senate Approves Investments and Securities Bill for Third Reading

The Nigerian Senate has approved the Investments and Securities (Repeal and Enactment) Bill 2024 for its third reading, following a review and adoption of recommendations from the Senate Committee on Capital Market. The committee, led by Senator Osita Izunaso (APC, Imo West), presented a report outlining the bill’s key provisions.

Once enacted, the bill will designate the Securities and Exchange Commission (SEC) as the primary regulatory authority overseeing Nigeria’s capital market. Designed to align with global best practices in investment and securities, the legislation aims to enhance the integrity of the securities market, prevent market abuse, and combat insider trading and other fraudulent activities, ensuring fair and lawful market operations.

The committee highlighted that while the current law initially had a transformative impact, it now requires significant updates to keep pace with evolving financial markets and international regulatory standards. The proposed bill is expected to attract both local and international investors, driving growth and diversification in Nigeria’s capital market.

Key provisions of the bill include enhanced investor protection through stronger regulations against market abuse and insider trading, as well as improved governance for publicly traded companies. The bill also introduces a regulatory framework for digital currencies, fintech activities, and technologies like blockchain and cryptocurrency, ensuring their integration into the capital market.

Additional measures in the bill outline clearer roles for regulatory bodies to reduce overlaps and improve the operational efficiency of the SEC. It also supports the regulation of diverse financial instruments, including derivatives and Exchange Traded Funds (ETFs), to deepen the market and meet the varied needs of investors.

With its passage through the third reading, the bill is poised to significantly contribute to the growth and diversification of Nigeria’s capital market, promoting economic expansion and job creation.