President Bola Tinubu has formally assented to the Investments and Securities Act 2024, replacing the Investments and Securities Act No. 29 of 2007.
This significant legislation strengthens Nigeria’s capital market by enhancing investor protection and introducing critical reforms aimed at promoting market integrity, transparency, and sustainable growth.
According to a statement from the Securities and Exchange Commission on Saturday, the new Act reaffirms SEC’s authority as the primary regulatory body overseeing Nigeria’s capital market. It also introduces transformative provisions designed to align the country’s market operations with international best practices.
“The Securities and Exchange Commission (SEC) is pleased to announce that President Bola Tinubu has assented to the Investments and Securities Act (ISA) 2024, which repeals the Investments and Securities Act No. 29 of 2007,” the statement read.
SEC Director-General, Dr. Emomotimi Agama, described the assent as a transformative step for the capital market. “The ISA 2024 reflects our commitment to building a dynamic, inclusive, and resilient capital market,” he said. “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.”
Agama also commended the support of stakeholders within and outside the capital market community for their role in achieving this milestone. He emphasized the continued need for collaboration in implementing the new Act, which is expected to benefit Nigeria’s economy.
The Director-General acknowledged the contribution of the National Assembly in the legislative process, recognizing their commitment to economic growth and investor confidence. “We also commend the Honourable Minister of Finance and Coordinating Minister of the Economy of Nigeria, as well as the Minister of State for Finance, for their invaluable contributions,” Agama added.
The ISA 2024 enhances SEC’s regulatory powers, bringing them in line with global securities regulators. The Act ensures compliance with the International Organization of Securities Commissions (IOSCO) Enhanced Multilateral Memorandum of Understanding (EMMoU), thus preserving SEC’s “Signatory A” status and improving Nigeria’s market attractiveness.
Key provisions of the new Act include the classification of securities exchanges into composite and non-composite exchanges, with provisions for financial market infrastructures such as central counterparties, clearing houses, and trade depositories. Additionally, the Act recognizes virtual/digital assets and investment contracts as securities, bringing Virtual Asset Service Providers (VASPs) and Digital Asset Operators (DAOPs) under SEC’s regulatory scope.
The ISA 2024 also introduces regulations for managing systemic risks in the Nigerian capital market and expands the categories of issuers to accommodate a broader range of innovative products. Notably, the Act provides for the regulation of Commodities Exchanges and Warehouse Receipts, essential for developing Nigeria’s commodities ecosystem.
Other significant provisions include relaxing restrictions on raising funds from the capital market by sub-national entities and mandating the use of Legal Entity Identifiers (LEIs) to enhance transparency. Furthermore, the Act explicitly prohibits Ponzi schemes and other unlawful investment schemes, imposing stringent penalties on their promoters.
In line with modernizing the legal framework, the Act also amends key provisions related to the composition and jurisdiction of the tribunal, ensuring that the tribunal can effectively perform its duties.
