Central Bank of Nigeria (CBN) has expressed concerns over proposed new powers for the Securities and Exchange Commission (SEC) in the Investment and Securities Bill 2024, citing potential conflicts with existing money laundering laws.
During a public hearing held by the Senate Committee on Capital Markets in Abuja, the CBN raised objections to certain provisions in the bill that would grant SEC absolute powers over public companies, including financial institutions currently under CBN’s control.
Dr. Tukur Galadima, representing CBN, highlighted the inconsistency of using cash to buy securities with anti-money laundering regulations. He also urged the committee to remove a section allowing for multi-currency investment, stating that currency matters fall within CBN’s jurisdiction.
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.
Despite these reservations, CBN expressed overall support for the bill’s intention to regulate investment and securities in the capital market.
SEC’s Director-General, Dr. Emomotimi Agama, stressed the importance of passing the new law to enhance Nigeria’s standing in the global capital market arena, especially in areas like commodities and cryptocurrencies. Stakeholders including PENCOM and NDIC also voiced their backing for the bill at the hearing.
Senator Osita Izunaso, Chair of the Committee, assured stakeholders that the final draft of the bill would be ready soon to move forward in the legislative process. He emphasized the significance of addressing all concerns to ensure successful presidential assent.
