The Investment & Securities Bill 2024 has marked a significant milestone by passing its second reading in Nigeria’s Senate. Designed to replace the current Securities and Exchange Commission (SEC) Act, this new legislation seeks to strengthen the regulatory framework for Nigeria’s capital market, ensuring it aligns with global standards.
Senator Osita Izunaso, Chairman of the Senate Committee on Capital Market, emphasized that the bill would protect investors, encourage foreign investment, and restore confidence in the Nigerian capital market. It aims to eliminate fraudulent practices such as market abuse and insider trading while fostering a transparent and trustworthy financial environment.
Key Features of the Investment & Securities Bill 2024:
- Stronger Investor Protections:
The bill introduces harsher penalties for fraudulent schemes, including a minimum fine of N20 million or up to 10 years imprisonment for Ponzi scheme operators. - Enhanced Market Integrity:
It explicitly prohibits unauthorized and unlawful trading practices, ensuring a fair and competitive market for all stakeholders. - Global Alignment:
By aligning with international best practices, the bill positions Nigeria’s capital market as a more attractive destination for foreign investors. - Investor Compensation:
A notable amendment allows the Investor Protection Fund (IPF) to cover losses related to the deregistration of brokerage firms, expanding its current scope.
According to Dr. Emomotimi Agama, Director General of the SEC, the bill not only fortifies protections against fraudulent schemes but also enhances the global competitiveness of Nigeria’s capital market.
The Senate Chief Whip, Tahir Monguno, underscored the importance of the bill in creating a safer investment landscape and eliminating risk factors that deter investors. Senate President Godswill Akpabio also expressed optimism that the bill would encourage capital inflow by minimizing risks for investors.
With the bill referred to the Senate Committee on Capital Market for further legislative actions, stakeholders are optimistic about the transformative impact it could have on the future of Nigeria’s financial sector.
