By Kolawole Ojebisi
The Central Bank of Nigeria (CBN) has explained its reasons for opposing giving absolute powers of regulating public companies to the Securities and Exchange Commission (SEC) as being proposed by the Senate.
The CBN Governor who was represented by Dr Tukur Galadima, made the reasons known on Thursday, during a public hearing on the Investment and Securities Bill, 2024, organised by the Senate Committee on Capital Market in Abuja.
Speaking at the event, Galadima argued that the bill, if passed into law, would create avoidable friction between the CBN and SEC. He noted that some of the public companies involved some financial institutions already under the control of the CBN.
Galadima also pointed out a proposal in the bill that seeks to allow for the use of cash to buy securities.
He faulted the proposal by saying, “You cannot use cash to buy securities. It is contrary to the provisions of the law against money laundering.”
The CBN representative also advised the committee to expunge section 193, which seeks to allow for investment in multi-currency, saying “The issue of currency is strictly with the CBN.”
He, however, said the CBN was in support of new laws to regulate investment and securities and the capital market in general.
In his presentation, the Director-General of SEC, Dr Emomotimi Agama, said the move by the Senate committee to repeal the Investment and Securities Act 2007 and enact a new one, was very necessary.
“For Nigeria to get it right among the comity 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,” he said.
The Chairman of the Committee, Senator Osita Izunaso, said the SEC bill was very sensitive “being the ombudsman law covering the entire capital market.”
