President Bola Tinubu has approved the amended Investment and Securities Act (ISA) 2024, a move aimed at strengthening Nigeria’s capital market and enhancing investor protection.
The Securities and Exchange Commission (SEC), which announced the development, stated that the legislation introduces critical reforms to promote market integrity, transparency, and sustainable growth.
“The new Act also introduces transformative provisions to further align Nigeria’s market operations with international best practices,” the SEC noted.
A key highlight of the Act is the enhancement of the SEC’s regulatory powers, bringing them in line with global securities regulators. These expanded functions ensure compliance with the International Organization of Securities Commissions’ (IOSCO) Enhanced Multilateral Memorandum of Understanding (EMMoU), allowing the SEC to maintain its prestigious Signatory A status. This, in turn, is expected to boost investor confidence and increase the appeal of Nigeria’s capital market.
Other notable provisions in the ISA 2024 include the classification of exchanges and the introduction of regulations on financial market infrastructures. The Act categorizes securities exchanges into Composite Exchanges, where all types of securities can be listed and traded, and Non-composite Exchanges, which focus on specific securities or products. Additionally, it provides a legal framework for Financial Market Infrastructures, covering entities such as Central Counterparties, Clearing Houses, and Trade Depositories.
Commenting on the development, SEC Director-General Dr. Emomotimi Agama described the Act as a transformative step for the capital market.
“The ISA 2024 reflects our commitment to building a dynamic, inclusive, and resilient capital market. By addressing regulatory gaps and introducing forward-looking provisions, the new Act empowers the SEC to foster innovation, protect investors more effectively, and reposition Nigeria as a competitive destination for both local and foreign investments,” Agama stated.
With these reforms, the Nigerian capital market is expected to align more closely with global standards, fostering increased investor participation and long-term market stability.