The Central Bank of Nigeria, CBN, has told the Nigerian Senate not to create confusion or friction for it and the Securities and Exchange Commission, SEC.
The statement was handed to the upper legislative chamber
during a one-day public hearing organised by the Senate Committee on Capital
Market on Thursday in Abuja in moves to amend the SEC bill.
The proposed bill seeks 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 the apex bank.
A clause in the proposed act to give way for securities to
be purchased in cash has also been kicked against by the Central Bank and some
stakeholders who attended the public hearing.
“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 aside from observations raised, CBN,
like other critical stakeholders, is in support of the planned new law for the
regulation of investment and securities and generally the capital market.
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 is 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 Nigerian economy in the area of the commodity markets, 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, the Chartered Institute of Stockbrokers, Capital
Market Solicitor Association, and the Institute of Capital Market Registrars,
among others.
In his closing remarks, the chairman of the committee,
Senator Osita Izunaso said the SEC bill is very sensitive, being the ombudsman
law covering the entire capital market.
He assured all the stakeholders that the final draft of the
bill will 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.
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