By Niyi Jacobs
The Securities and Exchange Commission (SEC) has introduced a new provision in the Investments and Securities Bill (ISB) 2024 to crack down on illegal fund managers, including those behind Ponzi and pyramid schemes. The Bill, currently before Nigeria’s National Assembly, proposes severe penalties for operators of such schemes, with fines of up to N20 million or a prison term of up to 10 years, or both, for those convicted.
In his address at the Public Hearing in Abuja, Senate President, Senator Godswill Akpabio, emphasized that the ISB 2024 was more than just legislation; it was a transformative step to modernize Nigeria’s financial markets. Represented by Senator Binos Yaroe, Akpabio stated that repealing the Investment and Securities Act (ISA) of 2007 would foster greater transparency, enhance investor confidence, and support Nigeria’s economic growth.
“The ISB 2024 is designed to provide a robust investment environment, ensuring our markets can thrive in a competitive global economy,” Akpabio remarked. He urged participants at the hearing to actively contribute to shaping a Bill that addresses Nigeria’s investment landscape and challenges.
Senator Osita Izunaso, Chairman of the Senate Committee on Capital Markets, discussed the critical role the Nigerian capital market plays in long-term economic development. He stressed the need for a strong legal framework to support rapid industrial development and long-term capital raising, pointing out that fintech disruptions and digital asset platforms now require adaptation within the legal framework.
SEC Director-General, Dr. Emomotimi Agama, highlighted other vital provisions in the Bill, such as an Investor Protection Fund (IPF) to compensate investors who suffer losses from the cancellation of registration of dealing members. The Bill also proposes new regulations for Commodity Exchanges and Warehouse Receipts, aiming to boost the country’s commodity ecosystem.
“The passage of the ISB 2024 will be pivotal for creating a world-class capital market that supports Nigeria’s ongoing economic diversification,” Agama added.
