President Bola Ahmed Tinubu has signed the Investment and Securities Act (ISA) 2024 into law, marking a crucial milestone in Nigeria’s capital market reform. The new law repeals the 2007 Investment and Securities Act, introducing a more robust regulatory framework to enhance investor protection, market transparency, and economic growth.
The Securities and Exchange Commission (SEC), in an official statement on Friday, described the legislation as a “transformative step” that aligns Nigeria’s capital markets with international best practices. SEC Director-General, Dr. Emomotimi Agama, emphasized that the Act reflects a commitment to building a dynamic, inclusive, and resilient financial ecosystem.
Key Reforms in ISA 2024
One of the significant changes introduced by ISA 2024 is the expansion of SEC’s regulatory powers to meet global financial standards. The law ensures that Nigeria maintains its “Signatory A” status under the International Organization of Securities Commissions (IOSCO) Enhanced Multilateral Memorandum of Understanding (EMMoU).
Other key reforms include:
- Classification of exchanges into Composite and Non-composite categories.
- Establishment of a legal framework for digital assets, commodities, and warehouse receipts.
- Empowering sub-national governments to raise capital through the market.
- Reduction of systemic risks and imposition of stricter penalties on Ponzi schemes.
Dr. Agama noted that these provisions strengthen investor confidence and reposition Nigeria as a competitive investment hub. “By addressing regulatory gaps and introducing forward-looking policies, the new Act empowers the SEC to foster innovation, protect investors more efficiently, and attract both local and foreign investments,” he added.
A Collaborative Effort
The SEC acknowledged the efforts of the National Assembly, the Finance Minister, and other stakeholders in shaping the law. Their contributions have ensured that the ISA 2024 fosters economic diversification, financial security, and a more attractive investment climate.
With the implementation of the new law, Nigeria’s capital market is expected to experience significant growth, innovation, and strengthened investor protection.
