The Nigerian Senate has moved forward with the Investment and Securities Bill 2024, which passed its second reading. This bill seeks to overhaul capital market regulations by repealing the Securities and Exchange Commission Act and introducing legislation aligned with global standards to enhance investor confidence.
Chairman of the Senate Committee on Capital Market, Senator Osita Izunaso, emphasized the bill’s capacity to transform Nigeria’s capital market by addressing insider trading, market abuse, and unauthorized securities dealings. The legislation proposes harsher penalties for Ponzi scheme operators, including fines of at least ₦20 million or imprisonment of up to 10 years, or both.
Additionally, the bill strengthens investor protections by extending the Investor Protection Fund’s scope to cover losses from brokerage firm deregistrations, complementing existing coverage for bankruptcy and negligence.
Senators Isa Jibrin and Adetokunbo Abiru backed the bill, citing its potential to improve regulatory oversight, build investor trust, and attract foreign investment. Senate President Godswill Akpabio expressed confidence that the reforms would reassure investors and create a more secure investment environment.
The bill now proceeds to the Senate Committee on Capital Market for further deliberations, marking a key step toward modernizing Nigeria’s financial systems and ensuring a stable, competitive capital market.