The Central Bank of Nigeria (CBN) has admonished the Senate not to create avoidable friction between it and Securities and Exchange Commission (SEC) .
Admonition of the apex bank to Senate through its committee on Capital Market was made on Thursday during public hearing on Investment and Securities Bill , 2024.
The proposed bill seeks for an act to repeal the Investment and securities Act 2007 and enact the Investment and Securities Bill, 2024.
In his submission on the proposed law , the representative of CBN , Dr Tukur Galadima kicked against absolute powers being proposed for SEC over Public Companies, which according to him , involved some financial institutions that are under the control of CBN .
He also kicked against provision in the proposed law for using cash to buy securities .
” You cannot use cash to buy securities . It is contrary to provisions of law against money laundry “, he said .
The CBN representative also advised the committee to remove the provision in the proposed law , specifically section 193 allowing for Investment in multi currency, saying ” the issue of currency is strictly with CBN”.
He however said that left for observations raised , the CBN like other critical stakeholders , is in support of planned new law for regulation of the investment and securities and generally the capital market .
But in his presentation , the Director – General of SEC , Dr Emomotimi Agama , said the move by the Senate committee to repeal the Investment and Securities 2007 Act and enact a new one, was very necessary .
” For Nigeria to get it right among the comity of Nations as far as the capital market is concerned, the proposed law , needs to be passed before the year runs out .
” The proposed bill , when passed into law , would turn around the Nigeria economy in the area of commodity market , cryptocurrency etc “.
Other Stakeholders who made presentations at the public hearing , supported the bill .
Some of the stakeholders are ÷ PENCOM, Nigeria Deposit Insurance Corporation (NDIC), Chartered Institute of Stockbrokers , Capital Market Solicitor Association, Institute of Capital Market Registrars etc .
In his closing remarks, the Chairman of the Committee , Senator Osita Izunaso , said the SEC bill was very sensitive being the ombudsman law covering the entire capital market .
He assured all the stakeholders that the final draft of the bill would be ready by next week and urged the office of Accountant – General of the Federation , to join the committee at this stage to avoid refusal of presidential assent when eventually passed for third reading by both chambers of the National Assembly .
