President Bola Ahmed Tinubu has enacted the Investment and Securities Act 2024, a significant advancement in Nigeria’s capital market reforms.
This new legislation repeals the Investments and Securities Act No. 29 of 2007, aiming to fortify the legal and regulatory framework governing investments and capital market operations in the country.
In a statement on Friday, the Securities and Exchange Commission hailed President Tinubu’s approval of the Investment and Securities Act (ISA) 2024 as a “transformative step” for Nigeria’s capital market.
The new law strengthens investor protection, enhances market transparency, and supports sustainable growth.
The SEC emphasized that the enactment of the ISA 2024 reinforces its role as the top regulator of Nigeria’s capital markets. The law introduces major reforms to align market operations with global standards, enhance regulatory oversight, and boost investor confidence.
A key achievement of the ISA 2024 is the expansion of the SEC’s regulatory powers to align with global standards set by organizations like the International Organization of Securities Commissions.
The SEC stated that the expanded regulatory powers would enable it to retain its “Signatory A” status under IOSCO’s Enhanced Multilateral Memorandum of Understanding, a key benchmark for credibility in global financial markets.
A key reform introduced by the ISA 2024 is the classification of exchanges into Composite and Non-composite categories, enhancing market structure and regulatory oversight.
The Act also establishes a legal framework for regulating financial market infrastructures, including clearinghouses, trade depositories, and central counterparties—key components of a robust capital market.
Additionally, it provides regulatory clarity for digital assets by formally recognizing virtual assets and investment contracts as securities for the first time.
The law introduces essential regulatory clarity to the digital asset space, officially recognizing virtual assets and investment contracts as securities for the first time.
The Act also enhances the operations and independence of the Investments and Securities Tribunal by amending key provisions on its composition, jurisdiction, and appointment process.
