President Bola Tinubu has approved the amended Investment and Securities Act (ISA) 2024, marking a significant step forward for Nigeria’s capital market.
The Securities and Exchange Commission (SEC), which made the announcement, stated that the new legislation strengthens the legal framework of the Nigerian capital market, enhances investor protection, and introduces critical reforms to promote transparency, market integrity, and sustainable growth.
“The new Act also includes transformative provisions that align Nigeria’s market operations with international best practices,” the SEC said.
One of the key features of the ISA 2024 is the enhancement of the SEC’s regulatory powers, bringing them in line with global securities regulators. These enhanced powers will ensure full compliance with the requirements of IOSCO’s Enhanced Multilateral Memorandum of Understanding (EMMoU), preserving the SEC’s ‘Signatory A’ status and further boosting the attractiveness of Nigeria’s capital market.
Other important provisions in the ISA 2024 include the classification of Securities Exchanges and the introduction of provisions for Financial Market Infrastructures. The Act distinguishes between Composite and Non-composite Exchanges. A Composite Exchange allows the listing and trading of all categories of securities and products, while a Non-composite Exchange focuses on a specific type of security or product. Additionally, the Act now includes provisions for Financial Market Infrastructures, such as Central Counterparties, Clearing Houses, and Trade Depositories.
Dr. Emomotimi Agama, the Director-General of the SEC, hailed the President’s approval as a transformative development for Nigeria’s capital market. He remarked, “The ISA 2024 reflects our commitment to building a dynamic, inclusive, and resilient capital market. By addressing regulatory gaps and introducing forward-thinking provisions, the new Act empowers the SEC to foster innovation, enhance investor protection, and position Nigeria as a competitive destination for both local and foreign investments.”
