NASS Transmits Key Investment Bill to President Tinubu for Assent
By Patience Ikpeme
The National Assembly has forwarded the long-awaited Investments and Securities Bill (ISB) 2024 to President Bola Ahmed Tinubu for his assent, signaling a potential landmark reform in Nigeria’s capital market.
Senator Osita Izunaso, Chairman of the Senate Committee on Capital Market, made the announcement during the Securities and Exchange Commission’s (SEC) budget defense on Tuesday in Abuja.
Senator Izunaso expressed optimism that President Tinubu will sign the bill into law within the stipulated 30-day period. “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,” he stated.
In a move aimed at bolstering investor education, Senator Izunaso also revealed that the Committee has formally requested the Minister of Finance to allocate a N10 billion special fund for this purpose in the 2025 budget.
Senator Anthony Yaro, also a member of the committee, commended the SEC’s performance in 2024 and expressed confidence that the ISB, coupled with recent reductions in deductions, would further enhance the Commission’s effectiveness in 2025. “I believe these developments will boost your performance in 2025. We know your capacity and what you can do, but you need to do more,” he urged.
Dr. Emomotimi Agama, Director General of the SEC, expressed gratitude to the National Assembly for its support, which he credited with driving positive developments in the capital market in 2024.
He highlighted Nigeria’s position as one of the world’s best-performing markets this year. “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 announced a significant reduction in the Federal Government’s deduction from 50% to 20%, a development facilitated by the committee’s intervention. Implementation of the reduced deduction is expected to take effect from March 1, 2025.
Dr. Agama reported strong budget performance for 2024, with gross income exceeding projections by 20.34%. “We achieved 100% and went above it by 20%,” he stated. He attributed the reduction in penalties collected in 2024 to increased compliance among market participants, emphasizing the SEC’s focus on encouraging compliance rather than imposing penalties.
“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 explained.
Dr. Agama reiterated that the capital market operates a disclosure-based regime, placing the onus on companies and directors to ensure the accuracy of information provided to the public. The SEC’s role, he emphasized, is to monitor compliance and penalize institutions that fail to meet standards.
Senator Victor Umeh, contributing to the discussion on the 2024 budget performance, expressed concern about companies disseminating false information to defraud investors.
He urged the SEC to strengthen its regulatory and enforcement mechanisms to protect Nigerians from such fraudulent practices. “I am worried about regulation and enforcement so that companies would not just bring up cooked figures to defraud Nigerians. Let your eyes be on those that use the market to defraud Nigerians,” he cautioned.
