R-L:Chairman of the Committee on Capital Market, Sen. Osita Izunaso and Director General, Securities and Exchange Commission, Dr. Emomotimi Agama during the budget defence by the SEC before the Senate Committee on Capital Market in Abuja, Tuesday.
The National Assembly has officially transmitted the Investments and Securities Bill (ISB) 2024 to President Bola Ahmed Tinubu for assent, marking a significant step toward strengthening Nigeria’s capital market framework.
Announcing the development during the Securities and Exchange Commission’s (SEC) budget defense in Abuja, Chairman of the Senate Committee on Capital Market, Senator Osita Izunaso, revealed that the bill had been signed by the Senate President and forwarded to the Executive. Lawmakers now anticipate the President’s approval within 30 days.
“We have done our part, and we expect the President to assent to it soon. This legislation is crucial for enhancing investor confidence and strengthening regulatory oversight,” Senator Izunaso stated.
Beyond the bill’s transmission, the Senate Committee has also formally directed the Minister of Finance to include a ₦10 billion special fund for investor education in the 2025 budget, reinforcing efforts to deepen financial literacy and market participation.
Market Growth and Policy Wins in 2024
Reflecting on key achievements in 2024, Senator Anthony Yaro commended the SEC’s proactive measures and regulatory refinements, noting that the ISB’s passage and reductions in regulatory deductions would further improve market performance.
“I believe these reforms will drive even better results in 2025. The SEC has demonstrated capacity, but we expect more,” he remarked.
SEC Director General, Dr. Emomotimi Agama, echoed this optimism, attributing Nigeria’s strong market performance in 2024 to supportive policies from the National Assembly.
“Your backing has injected fresh momentum into the market. Last year, we hoped for a reduction in the Federal Government’s 50% deduction on SEC revenues, but we couldn’t secure it in 2024. However, with the intervention of this committee and its Chairman, the Minister has now signed off on a reduction from 50% to 20%, set to take effect from March 1,” Agama disclosed.
Financial data from the SEC’s 2024 budget performance underscored this progress. While the projected income stood at ₦22.4 billion, actual gross income exceeded expectations, reaching ₦26.9 billion, representing a 20.34% surplus.
“Our expenditure for the period was ₦20.8 billion, with ₦12.68 billion allocated to deductions, leaving us with a net surplus of ₦2.5 billion,” Agama detailed.
Regulatory Compliance and Investor Protection
The SEC’s push for market discipline also saw a decline in penalties collected in 2024, signaling improved compliance among participants.
“Our role is to encourage adherence to regulations, not just penalize infractions. If compliance improves, penalties naturally decrease,” Agama explained.
Senator Victor Umeh, however, raised concerns over corporate accountability, urging stricter oversight to prevent companies from publishing misleading financial reports aimed at deceiving investors.
“I am deeply concerned about fraudulent disclosures. Regulators must intensify monitoring to ensure transparency and protect Nigerians from deceptive corporate practices,” Umeh cautioned.
With the ISB 2024 now awaiting President Tinubu’s signature, stakeholders remain hopeful that the reforms will bolster investor confidence, enhance market efficiency, and position Nigeria’s capital market for sustained growth.
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