Nigeria’s Capital Market Poised For Transformation With Landmark Bill
Nigeria is on the verge of a capital market revolution as the Senate advanced the Investments and Securities Bill 2024 through its second reading on Wednesday. The ambitious legislation, designed to overhaul the nation’s financial regulatory framework, promises to align the market with global best practices and inspire confidence among local and international investors.
The bill, which proposes repealing the Securities and Exchange Commission Act, received widespread support during the debate led by Senator Osita Izunaso, Chairman of the Senate Committee on Capital Market. Izunaso emphasised its potential to create a more robust, transparent, and competitive market environment. Central to the legislation are provisions granting the Securities and Exchange Commission (SEC) enhanced legal authority to tackle emerging challenges such as systemic risk, derivatives regulation, and investor protection.
Among its highlights are stringent penalties for financial malpractices, including Ponzi schemes and fraudulent fund management operations, with offenders facing fines of up to ₦20 million or a decade of imprisonment. Senators Isa Jibrin and Adetokunbo Abiru hailed the reforms, stressing the importance of empowering the SEC to meet international standards and ensure market integrity.
Senate President Godswill Akpabio described the legislation as pivotal to Nigeria’s economic growth, stating, “The passage of this bill will reassure investors and help attract more funds into the capital market by minimizing risks.” The bill has now been referred to the Senate Committee on Capital Market for further scrutiny.
Beyond investor confidence, the legislation introduces regulatory measures for Commodity Exchanges and Warehouse Receipts, a vital step in strengthening Nigeria’s commodities sector. These innovations are expected to play a critical role in diversifying the economy and fostering sustainable growth.
The Director-General of the SEC, Emomotimi Agama, lauded the bill’s passage as a milestone, declaring it a gateway to a world-class capital market. He underscored the transformative impact of the proposed reforms on the global competitiveness of Nigeria’s financial sector. As the bill progresses, expectations are high that it will mark a turning point for the nation’s capital market and economic development.
