The Central Bank of Nigeria (CBN) has voiced significant concerns over provisions in the Investment and Securities Bill 2024, warning that some of the proposed powers for the Securities and Exchange Commission (SEC) may conflict with existing money laundering laws and could lead to operational clashes between the two entities.
At a public hearing in Abuja held by the Senate Committee on Capital Markets, Dr. Tukur Galadima, representing CBN, highlighted that the bill’s sweeping authority for SEC to oversee public companies, including financial institutions already regulated by the central bank, was problematic. He also opposed the provision allowing the use of cash to purchase securities, citing it as contradictory to anti-money laundering regulations. “You cannot use cash to buy securities,” Galadima emphasized, urging the committee to reconsider the controversial Section 193 of the bill, which involves multi-currency investments, arguing that currency management should remain under CBN’s control.
Despite these objections, Galadima affirmed the CBN’s general support for the bill, particularly in its efforts to strengthen the capital market’s regulatory framework. The SEC, too, expressed optimism about the bill’s potential. Dr. Emomotimi Agama, the Director-General of SEC, stressed that the bill’s passage was crucial for positioning Nigeria favorably in the global capital market and for advancing sectors like cryptocurrency and commodity markets.
Other stakeholders, including PENCOM, the Nigeria Deposit Insurance Corporation (NDIC), and various market professional bodies, also lent their support during the hearing.
As the bill moves closer to final approval, Senate Committee Chairman Senator Osita Izunaso reassured participants that the draft would be ready for review within a week. The committee aims to present the bill to the Senate for further deliberations, with hopes of securing presidential assent before the end of the year.
