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 for 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.
SEC bill 2024: Do not create confusion — CBN cautions Senate