To Protect Investors, Senate Passes Bill to Repeal SEC Act

•Advocates marshall plan to tackle flooding

•Seeks appropriation for Niger, Benue rivers dredging in 2025 budget

Sunday Aborisade in Abuja

The Investments and Securities Bill, meant to repeal the Securities and Exchange Commission (SEC) Act, scaled second reading on the floor of the Senate yesterday.

The approval followed the presentation of the lead debate on the general principles of the bill by Sen. Osita Izunaso (APC-Imo) during plenary.

The Senate Leader, Opeyemi Bamidele sponsored the bill while Senator Izunaso co-sponsored it.

The bill is titled “Investments and Securities Bill, 2024”.

Leading the debate, Izunaso said the bill sought to repeal the Investments and Securities Act, of 2007 and enact the Investments and Securities Act, 2024.

It was meant to establish the Securities and Exchange Commission as the apex regulatory authority for the Nigerian Capital Market.

“It will be a regulation of the Market to ensure capital formation, the protection of investors, maintenance of fair, efficient and transparent market, and reduction of systemic risk.”

Izunaso further said the main objective of the bill was to enact legislation that aligned with global dynamics as they relate to the regulation of capital market through the provision of an innovative regulatory framework.

“It will protect the integrity of the security market against all forms of market abuse and insider dealing.

“It will prevent unauthorised, illegal, unlawful, fraudulent and unfair trade practices, relating to securities and investments.”

He said that the overriding purpose of the proposed legislation was to strengthen the capacity of the Commission for the effective performance of its statutory mandate.

He also said that it would, “as well as reposition this vital sector of our economy for national economic transformation.”

Senators Isa Jibrin (APC-Kogi)  and Sen. Adetokunbo Abiru (APC-Lagos) supported the bill.

Jibrin said, “We have been having problems in terms of definite  assignments that the Securities and Exchange Commission (SEC) is supposed to carry to ensure that the Nigerian Capital Market functions effectively.

“This amendment is very important to ensure that SEC does its job in line with the global best practice.”

On his part, Abiru said the bill would not only bring about the discipline and improvement in the capital market, it would also enhance the capacity of the regulator.

In his remarks, President of the Senate, Godswill Akpabio said a lot of people would be happy to infuse funds into the capital market when they know a lot of the risk has been minimised.

He thereafter referred the bill to the Senate Committee on Capital Market for further legislative actions to report back in four weeks.

Also, yesterday, the Senate passed a resolution urging the federal government to come up with a Marshall Plan that would address the perennial flooding in Nigeria, which has claimed lives and valuable properties.

The red chamber noted that climate change and other factors had pointed to the fact that there would be more downpour in the next months which might, lead to massive flooding in littoral states.

The federal lawmakers lamented the collapse of the Alau Dam in Maiduguri, Borno State, which led to the death of about 37 persons and left over 400,000 others displaced, following a massive flood.

They recommended that rather than resorting to ad hoc interventions each time parts of the  country are flooded, the federal government should put in place, a Marshall Plan to tackle the natural disaster as before it occurred.

The Senate’s resolution followed two motions on floods.

One of the motions, “Urgent Need to Intervene in the Humanitarian Crisis Caused by Flooding in Adamawa-North Senatorial District”, was moved by Sen. Amos Yohanna (APC, Adamawa-North).

The second motion, “Motion on the Recent Devastation Wrought by Flood that  Caused Widespread Destruction in Ondo Town in Ondo-West Local Government Area of Ondo State”, was moved by Sen. Adeniyi Adegbonmire (APC, Ondo-Central).

As a first step in addressing flooding, the Senate urged the Executive arm of government to make “adequate provision in the 2025 appropriation for the dredging of River Niger and River Benue.”

In the case of the flooding in Ondo State, the Senate asked the Ondo State Government to conduct an assessment of the communities affected, “with a view to finding a lasting solution to the menace of flooding, which frequently occurs in the affected areas.”

It also called on the National Emergency Management Agency (NEMA) to immediately mobilise relief materials to displaced victims in  Ondo-West Local Government Area and the restoration of electricity supply by the Benin Electricity Distribution Company (BEDC).