The Senate approved the Investments and Securities (Repeal and Enactment) Bill 2024 for its third reading on Wednesday.
The passage followed the consideration and adoption of recommendations presented by the Senate Committee on Capital Market, chaired by Senator Osita Izunaso (APC, Imo West).
According to the committee’s report, the bill, once enacted, will designate the Securities and Exchange Commission as the apex regulatory authority for Nigeria’s Capital Market.
The proposed legislation is designed to align with global best practices in investments and securities. Its objectives include safeguarding the integrity of the securities market, preventing market abuse, insider trading, and other fraudulent trade practices while ensuring fair and lawful operations.
The committee’s report stated, “Despite its revolutionary impact at inception, the existing law now requires substantial updates to keep pace with the evolving financial markets and global regulatory frameworks, thereby making it more appealing to local and international investors.
“The proposed legislation will foster significant growth in the capital market, drive diversification, and create a conducive environment for investors in Nigeria’s capital market.
“It aims to address modern financial malpractices, reinforce investor protection through robust regulations against market abuse, and insider trading, and enhance governance standards for publicly traded companies.”
The bill also proposes a regulatory framework for digital currencies and fintech activities, including oversight of blockchain and cryptocurrency transactions, to integrate innovative technologies into the capital market.
Further provisions include a clear delineation of roles among regulatory bodies to enhance transparency and reduce overlaps, thereby improving the SEC’s operational efficiency.
Support for the introduction and regulation of diversified financial instruments such as derivatives, Exchange Traded Funds, and other advanced products to deepen the market and meet diverse investor needs.
Measures to drive growth and diversification in the capital market, contributing to economic expansion and job creation.
Following a clause-by-clause consideration, the Senate passed the bill for a third reading.