The Nigerian Senate has passed the Investments and Securities Repeal and Re-enactment Bill, 2024.
The bill was passed at Wednesday’s plenary session following the adoption of the report from the Committee on Capital Markets, chaired by Senator Osita Izunaso (APC-Imo).
The bill was proposed by the Nigerian Securities and Exchange Commission with the aim of making the Nigerian securities market more competitive.
It was sponsored by Senator Bamidele Opeyemi and co-sponsored by Izunaso.
What Transpired at Plenary
On Wednesday, Izunaso told his colleagues that during the public hearing on the bill, stakeholders were unanimous in their support for its passage.
- He said that the capital market is revolutionary and, after many years of operation, it needed significant updates to meet global best practices and adapt to the evolving financial market and global regulatory frameworks.
“The re-enactment of this proposed legislation will undoubtedly provide significant opportunities to drive the growth of the capital market and diversification, thereby creating a conducive atmosphere for investors in the Nigerian capital market,” he said, according to NAN.
- He assured that the bill would address “modern forms of financial malpractices and reinforce investors’ protection by fostering robust and sustainable economic and social relations.”
- Izunaso highlighted that the regulatory frameworks contained in the bill will help to properly oversee digital currencies and fintech companies involved in blockchain and cryptocurrency transactions.
- He said the integration of innovative technologies within the scope of the capital market is essential, and the bill creates a regulatory pathway for such integration.
The lawmaker added that the bill is a way of diversifying and growing the capital market through revolutionary market offerings that will create job opportunities within the Nigerian capital markets.
Afterward, the Senate passed the bill.
What You Should Know
Recall that the Nigerian SEC previously presented this bill to the former president of Nigeria, Muhammadu Buhari, and stated that the purpose of the bill was to make the Nigerian securities market more competitive.
- Stakeholders and active members of the Nigerian crypto community have hailed the bill, saying that it will help mitigate the actions of bad actors who use the term “crypto” to swindle the general public.
- They lamented that the current crypto space in Nigeria is dominated by scammers and bad actors, and the proposed bill will go a long way in serving as a deterrent.
- The bill’s passage is expected to also influence investor confidence, foster transparency, and modernize Nigeria’s financial market at a time when there is an ongoing legal clampdown on illegal crypto-dealing companies.
Despite portions of the bill being flagged by the Central Bank of Nigeria and the Finance Ministry, Senator Osita Izunaso, the chairman of the Senate Committee on Capital Markets, hailed the bill, saying it could enhance Nigeria’s capital competitiveness if passed.
Several players in the Nigerian crypto industry have reacted to the bill, citing its importance and timing.
