President Bola Ahmed Tinubu has officially signed the Investment and Securities Act (ISA) 2024 into law, marking a pivotal advancement in Nigeria’s capital market reforms.
This legislation replaces the 2007 Investment and Securities Act and is aimed at strengthening investor protection, enhancing market transparency, and aligning Nigeria’s financial sector with global best practices.
The Securities and Exchange Commission (SEC), in a statement on Friday, hailed the new law as a “transformative step” toward fostering sustainable economic growth and reinforcing regulatory oversight.
Emomotimi Agama, the SEC’s Director-General, highlighted its significance, stating, “The ISA 2024 reflects our commitment to building a dynamic, inclusive, and resilient capital market.”
A major component of the Act is the expansion of the SEC’s regulatory authority, ensuring that Nigeria retains its “Signatory A” status under the International Organization of Securities Commissions’ Enhanced Multilateral Memorandum of Understanding (IOSCO EMMoU).
This classification reaffirms the country’s adherence to international financial regulations and best practices. The legislation also introduces new structural classifications for exchanges, categorizing them as Composite or Non-composite, and establishes a legal framework for digital assets, commodities, and warehouse receipts. Additionally, it grants sub-national governments greater access to capital markets for raising funds.
The Act also fortifies measures against financial fraud, particularly Ponzi schemes, by enforcing stricter penalties. Industry analysts anticipate that these provisions will bolster investor confidence and deter illicit financial activities.
Agama noted that the law not only bridges regulatory gaps but also encourages market innovation. “By incorporating forward-looking provisions, the new Act enables the SEC to enhance investor protection and reposition Nigeria as a prime destination for both local and foreign investments,” he said.
The SEC acknowledged the collaborative efforts that contributed to the signing of the law, crediting the National Assembly, the Minister of Finance, and other key stakeholders for their roles in shaping the legislation.
The ISA 2024 is expected to drive economic diversification, foster innovation, and increase Nigeria’s appeal as a stable and profitable investment destination. With these reforms, Nigeria is set to further establish itself as a leading financial hub in Africa.
