President Bola Tinubu has signed the amended Investment and Securities Act (ISA) 2024, which will strengthen Nigeria’s capital market, enhance investor protection, and align regulations with global standards.
The Securities and Exchange Commission (SEC), which announced the development, said the new legislation introduces key reforms aimed at improving 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 stated.
A major highlight of the new law is the enhancement of SEC’s regulatory powers, ensuring compliance with the International Organization of Securities Commissions (IOSCO) standards.
The strengthened framework allows Nigeria to retain its “Signatory A” status under IOSCO’s Enhanced Multilateral Memorandum of Understanding (EMMoU), a crucial recognition that enhances investor confidence.
The ISA 2024 also introduces new classifications for Securities Exchanges, dividing them into Composite and Non-composite Exchanges.
A Composite Exchange allows trading of all categories of securities and products, while a Non-composite Exchange focuses on a single type of security.
Additionally, the Act incorporates Financial Market Infrastructures, including central Counterparties, Clearing Houses, and Trade Depositories, to further modernise market operations.
Describing the law as a “transformative step”, SEC Director-General Dr. Emomotimi Agama praised President Tinubu for the approval, emphasising its impact on the market’s future.
“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 efficiently, and reposition Nigeria as a competitive destination for local and foreign investments,” Dr. Agama said.
With these reforms, the SEC aims to enhance market credibility, attract investment, and reinforce Nigeria’s position in the global financial landscape.
