- The Central Bank of Nigeria cautioned the Senate against granting unchecked authority to the Securities and Exchange Commission in the Investment Bill
- Dr. Tukur Galadima expressed concerns over cash transactions for securities, highlighting potential conflicts with anti-money laundering laws in the proposed bill
The Central Bank of Nigeria (CBN) has cautioned the Senate against granting the Securities and Exchange Commission (SEC) unchecked authority in the Investment and Securities Bill, 2024.
Speaking during a public hearing organized by the Senate Committee on Capital Market in Abuja, Dr. Tukur Galadima, representing the CBN, argued that giving SEC absolute powers could lead to conflicts, especially since some regulated public companies are also financial institutions overseen by the CBN.
Galadima expressed concern over a bill clause permitting cash for securities purchases, warning that it conflicts with anti-money laundering laws.
He further recommended removing section 193, which allows investments in multiple currencies, stating that currency control is solely under CBN’s purview.
Despite these objections, the CBN supports the Senate’s efforts to update regulatory laws for the investment and capital markets.
In his presentation, the Director-General of the SEC, Dr Emomotimi Agama, said the move by the Senate committee to repeal the Investment and Securities Act 2007 and enact a new one was necessary.
“For Nigeria to get it right among the comity of nations as far as the capital market is concerned, the proposed law must be passed before the year runs out. The proposed bill when passed into law would turn around the Nigerian economy in the area of commodity market, cryptocurrency etc,” he said.
The Chairman of the Committee, Senator Osita Izunaso, said the SEC bill was very sensitive “being the ombudsman law covering the entire capital market.”