This is in a bid to ensure that illegal fund managers are not allowed to fleece unsuspecting Nigerians of their hard earned funds even as the Securities and Exchange Commission (SEC) said, it is introducing an express prohibition of Ponzi/Pyramid Schemes.
These and others, it stated, are contained in the Investments and Securities Bill (ISB) 2024 currently before the National Assembly.
The Bill proposes that promoters and operators of any entity engaged in a prohibited scheme commits an offence and is liable on conviction to a penalty of not less than N20 million or imprisonment to a term of 10 years or both.
Speaking, at the public hearing in Abuja, president of the senate, Senator Godswill Akpabio, said the Investment and Securities Bill 2024 is not merely a legislative document; but a beacon of hope for the nation’s economic landscape.
Represented by Senator Binos Yaroe, Akpabio said by repealing the Investment and Securities Act of 2007, the nation is taking a bold step towards modernising its financial markets, fostering transparency, and enhancing investor confidence.
He added that the Bill is designed to create a more robust and equitable environment for investment, ensuring that markets can thrive in an increasingly competitive global economy.
He added that, “together, we can ensure that the ISB 2024 is not just a piece of legislation but a transformative tool that propels Nigeria towards a future of economic resilience and prosperity.”
Also, the chairman of the Senate Committee on Capital Market, Senator Osita Izunaso said the Nigerian capital market is the segment of the financial system in which long-term securities and financial assets are bought and sold as it channels the wealth of savers and investors to those who can put it to long-term productive use, such as governments and corporate entities.
Izunaso stated that, in view of Nigeria’s quest for urgent, rapid and sustainable economic development, a well-developed capital market which serves as the bedrock for long term capital raising and industrial development is imperative.
He said given the crucial role of the Nigerian capital market in catalysing national economic transformation, the market requires a strong legal framework which is in conformity with ever evolving societal and global realities.
The director-general of SEC, Dr Emomotimi Agama, said the Bill also prescribes stringent jail terms and other stiff sanctions for the promoters of Ponzi schemes.
He stated,”A vital provision in the Bill is the new stipulation that the Investor Protection Fund (IPF) set up by the Securities Exchanges would compensate investors who sufer pecuniary losses arising from the revocation or cancellation of the registration of a dealing member firm.
“This Bill also contains an entirely new Part which provides for the regulation of Commodity Exchanges and Warehouse Receipts. These provisions are essential to alow for the development of the entire gamut of the Commodities ecosystem.”
