NASS to boost capital market with investments, securities bill

The National Assembly has taken a step to strengthen the Nigerian capital market with the passage of the Investments and Securities Bill 2024.

The Bill has been transmitted to President Bola Tinubu for assent, with lawmakers hopeful that the president will sign it into law within the next 30 days.

The Chairman of the Senate Committee on Capital Market, Osita Izunaso, made the announcement during the Securities and Exchange Commission’s budget defence on Tuesday in Abuja.

“The Senate President has signed the Investments and Securities Bill 2024, and it has now moved to the Executive for assent. We have 30 days for that to happen, and we expect that the president will assent to it,” Izunaso said.

The ISB is expected to provide a framework that will enhance the efficiency and growth of the capital market, making it more attractive to both local and foreign investors. The Bill aims to address various challenges in the market, including market integrity, investor protection, and more robust regulation.

In addition to the ISB, Izunaso revealed that the committee had directed the Minister of Finance to include a special fund of N10bn for investor education in the capital market as part of the 2025 budget.

The Director-General of SEC, Emomotimi Agama, thanked the National Assembly for its support in advancing the capital market.

“Your support has gingered the market; there is a new spirit, and that support has assisted us to achieve what we achieved together,” Dr. Agama stated.

He also noted that Nigeria was one of the best-performing markets globally in 2024.

“Last year, we wished that the Federal Government’s 50 per cent deduction would be reduced to 20 per cent, but we could not achieve that in 2024. We are glad to say that with the intervention of the committee and the chairman, the minister has signed the reduction of the deduction from 50 per cent to 20 per cent. We are hopeful that the implementation will take effect from March 1,” he said.

Agama further highlighted the SEC’s 2024 budget performance, revealing that the Commission exceeded its projected income by 20.34 per cent, generating N26.9bn against the projected N22.4bn. The SEC’s expenditures for the period amounted to N20.8bn, with N12.68bn going toward deductions, leaving a net surplus of N2.5bn.

On the issue of penalties, Agama explained that the reduction in penalties collected in 2024 was a result of the high level of compliance by market participants. “If you prepare participants and they comply, penalties will certainly be reduced. That reduction means the market is beginning to comply, which increases efficiency,” he said.

The PUNCH reported that the Investments and Securities Bill 2024, aimed at transforming Nigeria’s capital market and enhancing the regulatory framework, passed the second reading in the Senate.