The Nigerian capital market is on the brink of significant transformation following the transmission of the Investments and Securities Bill 2024 to President Bola Ahmed Tinubu for approval.
The Chairman of the Senate Committee on Capital Market, Senator Osita Izunaso, confirmed that the bill has moved from the legislative chambers to the executive branch, marking a crucial step towards financial reform. Lawmakers anticipate that within the next 30 days, the president will give his assent, ushering in a new phase for the capital market.
During a budget defense session with the Securities and Exchange Commission (SEC) in Abuja, Izunaso emphasized that the bill is a product of rigorous deliberations aimed at strengthening Nigeria’s investment landscape.
He noted that in addition to forwarding the bill for assent, the Committee has formally directed the Minister of Finance to incorporate a N10 billion special fund in the 2025 budget dedicated to investor education. This initiative is expected to deepen financial literacy and enhance the participation of both institutional and retail investors in the market.
Senator Anthony Yaro lauded the SEC for the strides taken in 2024, highlighting the positive impact of the pending Securities Bill and the reduction in deductions that had previously burdened market players.
He expressed optimism that these changes would empower the SEC to perform better in 2025, stressing that while progress has been made, there is still room for improvement. His remarks reinforced the belief that a well-regulated and investor-friendly market is critical to Nigeria’s economic growth.
The Director-General of the SEC, Dr. Emomotimi Agama, expressed gratitude to the National Assembly for its unwavering support, attributing the market’s progress to their commitment.
He acknowledged that Nigeria’s capital market was among the best-performing markets globally in 2024, a testament to the collective effort of stakeholders pushing for reforms. A significant win for the market was the reduction of the Federal Government’s deduction from 50 percent to 20 percent—a development he credited to the intervention of the Senate Committee and the Minister of Finance. The implementation of this reduction is expected to take effect from March 1, creating a more favorable environment for investors.
Agama also provided insights into the financial performance of the SEC, revealing that while the projected revenue for 2024 stood at N22.4 billion, the actual gross income reached N26.9 billion, reflecting a 20.34 percent surplus. This financial success, he noted, was a direct result of prudent fiscal management and increased investor confidence.
He further stated that penalties collected in 2024 saw a reduction, which he attributed to improved compliance with regulatory guidelines. According to him, the SEC’s primary role is to enforce transparency and accountability, ensuring that market participants adhere to best practices rather than focusing on punitive measures.
Speaking on regulatory oversight, the SEC DG emphasized the importance of maintaining a disclosure-based system, where companies and directors are held accountable for the accuracy of financial reports released to the public. He reiterated that the Commission would continue to monitor these disclosures, penalizing institutions that fail to meet required standards to safeguard investor interests.
As Nigeria moves towards implementing the Investments and Securities Bill 2024, stakeholders are hopeful that the reforms will solidify the country’s position as a leading financial hub in Africa. With increased investor education, reduced financial burdens on market players, and strengthened compliance measures, the capital market is set to experience sustained growth and greater investor participation in the years ahead.
