Senate Takes Major Step Towards Financial Reform With Investments Bill Approval

The Senate has passed the Investments and Securities (Repeal and Enactment) Bill 2024 for its third reading on Wednesday. This follows the review and adoption of recommendations by the...READ MORE…

Senate Committee on Capital Market, led by Senator Osita Izunaso (APC, Imo West).

Once enacted, the bill will designate the Securities and Exchange Commission (SEC) as the primary regulatory body for Nigeria’s Capital Market. Its aim is to bring Nigeria’s investment and securities regulations in line with global best practices, ensuring the integrity of the market and protecting it from abuse, insider trading, and fraudulent activities.

The committee emphasized the need for a major update to existing laws to keep pace with rapidly evolving financial markets and international regulations, which would attract both local and foreign investors. The proposed legislation is expected to promote growth in the capital market, foster diversification, and create a more attractive environment for investors.

The bill also includes provisions for regulating digital currencies, fintech activities, and integrating blockchain and cryptocurrency transactions into the market. Additionally, it seeks to clarify the roles of various regulatory bodies to enhance transparency, reduce overlap, and improve the operational efficiency of the SEC.

Other provisions aim to promote the introduction of diversified financial instruments, such as derivatives and Exchange Traded Funds, to meet the needs of a broader range of investors and deepen market activity. These measures are expected to contribute to economic growth and job creation.

After a detailed clause-by-clause review, the Senate passed the bill for its third reading, marking a significant step in the modernization of Nigeria’s capital market.

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