The Central Bank of Nigeria (CBN) said on Thursday that some powers proposed for the Securities and Exchange Commission (SEC) in the new Investment and Securities Bill 2024 could conflict with existing laws on money laundering.
It also noted that some of the provisions could pit it against SEC during implementation.
The apex bank expressed its reservations when the Senate Committee on Capital Markets held a public hearing on the bill in Abuja.
The bill seeks to repeal the Investment and Securities Act 2007 and enact the Investment and Securities Bill, 2024.
CBN’s representative at the session, Dr Tukur Galadima, observed that the bill proposed absolute powers for the SEC to oversee public companies, including certain financial institutions already under the control of the apex bank.
Galadima also opposed the provision in the proposed law for using cash to buy securities.
He noted, “You cannot use cash to buy securities.
“It is contrary to provisions of law against money laundering.”
Galadima also advised the committee to remove the provision in the proposed law, specifically section 193, which allows for investment in multi-currency.
“The issue of currency is strictly with CBN”, he insisted.
However, he said except for those observations, CBN, like other stakeholders, was in support of the bill for regulation of investment and securities and generally the capital market.
Making a presentation to the committee, the Director-General of SEC, Dr Emomotimi Agama, said the move by the Senate committee to repeal the existing law was important
He explained, “For Nigeria to get it right among the community 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 commodity market, cryptocurrency, etc.”
Other stakeholders who made presentations at the public hearing supported the bill.
Some of the stakeholders were PENCOM, Nigeria Deposit Insurance Corporation ( NDIC), Chartered Institute of Stockbrokers, Capital Market Solicitor Association, and Institute of Capital Market Registrars
The Chairman of the Committee, Senator Osita Izunaso, while winding down the hearing, said the SEC bill was very sensitive, being the ombudsman law covering the entire capital market.
Izunaeo assured all the stakeholders that the final draft of the bill would be ready by next week and urged the office of the Accountant-General of the Federation to join the committee at this stage to avoid refusal of presidential assent when eventually passed for a third reading by both chambers of the National Assembly.
The committee will report its findings to the Senate for further action in the next few weeks.
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