Speaker of Nigeria’s House of Representatives, Hon. Femi Gbajabiamila, on Tuesday harped on the importance of capital market to Nigeria’s development in view of its huge potential to increase investments in assets and wealth creation on a sustainable basis.
The Speaker made this remark during a Public Hearing Call/Submission of Memoranda on the Investments and Securities Bill and the Chartered Institute of Stockbrokers Bill at the Green Chambers in Abuja
Represented at the forum by Hon. Peter Akpatason, the lawmaker pointed out that capital markets do provide funding for new and existing businesses to innovate, expand, adapt to market changes and strides and also allows small and large scale investors to contribute to growth of enterprises and by so doing create wealth and economic development.
On the importance of the two bills, the Speaker said: “Both bills for consideration today are in keeping with our commitment to the legislative agenda of the 9th House of Representatives to pursue far reaching reforms of critical institutions in our country.
“Our ultimate goal is to ensure that these institutions are properly grounded to perform their functions, execute their mandate and serve the best interest of the Nigerian people.
“The need to ensure that the operations of the capital market and the entire industry sector are sufficiently fair and transparent to ensure investor confidence is particularly of concern. It is often said that capital is cowardly and will run at the slightest risk. In this new global economy, when investors have the option to quickly move money across industries, nations and countries, we cannot allow deficiencies in the system that cause investors to worry about the safety of their investments.
“I am delighted that many industry stakeholders have convened in this Public Hearing today to participate in this public hearing and I urge you to take full advantage of this public hearing to make well thought out contributions so that final legislation that emerges from this process can adequately reflect the talents and expertise of the men and women who operate and regulate the capital market in Nigeria”, Gbajabiamila added.
In his remarks, Chairman of the House Committee on Capital Markets and Institutions, Hon. Babangida Ibrahim, said the ISA Bill sought to repeal the existing Investments and Securities Act 2007 and to establish a new market infrastructure and wide ranging system of regulation of investments and securities businesses in Nigeria especially in the areas of derivatives, systematic risk management, financial market infrastructure and Ponzi scheme and platforms.
According to him, other areas the bill seeks to address are alternative trading systems, inclusion of National Pensions Commission as part of the board of the Securities and Exchange Commission, deletion of the provisions on merger control in the current Act and amendment of the criteria of borrowing by sub nationals and strengthening and enforcement powers of the Securities and Exchange Commission in line with the requirement of the International Organisation of Securities Commissions (IOSCO), amongst others.
He clarified: “The Act will achieve transformation of the market, from manual to automation, from manual to multiple securities exchanges, influx of foreign professionals into the country and also need to harmonise standards. The bill will also achieve expansion of products range in the market, equities, bonds, sukuk, derivatives and an advent of electronic share issuance.
“Occasions such as this give us an opportunity to brainstorm, work together and proffer solutions on challenges within the capital market. The Securities and Exchange Commission as regulators of the capital market are saddled with responsibilities of ensuring a well regulated capital market, one that is dynamic, fair, transparent and efficient for the nation’s economic development”, Ibrahim added.
The lawmaker assured that the House of Representatives and indeed the Committee on capital market were committed to ensuring that the SEC delivers on its core mandate of due registration of the players in the capital market, market integrity avoid systemic risk, guarantee inspection, investigation of breaches, due surveillance, market development and law enforcement and rules making.
He explained: “This Committee is indeed proud of these bills as they seek to ensure a more robust, vibrant, prosperous and more developed capital market and also to ensure that the capital market is well institutionalized and accountable.
“We hope the resources of Nigerians in the capital market will remain safe, accountable and prosperous. The capital market is a veritable tool for wealth creation and we will ensure this is true for Nigerians. If there was any time we need to rally for the economic good of Nigeria it is now and this is the time”, he added,
