In a significant move to modernize Nigeria’s financial landscape, President Bola Ahmed Tinubu has signed the Investment and Securities Act (ISA) 2024 into law. This landmark legislation, which replaces the 2007 Investment and Securities Act, aims to bolster investor confidence, enhance regulatory oversight, and position Nigeria’s capital market for sustainable growth.
The Securities and Exchange Commission (SEC), in a statement on Friday, described the new law as a transformative step that reinforces investor protection, improves market transparency, and aligns Nigeria’s financial regulations with international standards.
Strengthening Market Regulation and Oversight
The ISA 2024 cements the SEC’s role as the apex regulator of the capital market, equipping it with expanded powers to enforce compliance and uphold market integrity. One of its key reforms includes maintaining Nigeria’s “Signatory A” status under the International Organization of Securities Commissions’ (IOSCO) Enhanced Multilateral Memorandum of Understanding (EMMoU), ensuring Nigeria remains a credible player in global financial markets.
“This legislation reflects our commitment to building a dynamic, inclusive, and resilient capital market,” said SEC Director-General Emomotimi Agama. “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 both local and foreign investments.”
Key Provisions of the ISA 2024
- Expansion of Regulatory Powers – The SEC now has broader authority to regulate market operations, ensuring compliance with global best practices.
- Reclassification of Exchanges – The law introduces two categories of exchanges: Composite and Non-composite, streamlining operations within the capital market.
- Digital Asset Regulation – For the first time, the Act establishes a legal framework for digital assets, commodities, and warehouse receipts, providing clarity and security for investors in emerging financial technologies.
- Support for Sub-national Fundraising – State and local governments can now raise capital more effectively through the market, creating opportunities for infrastructure development and economic expansion.
- Crackdown on Ponzi Schemes – The new law introduces stricter penalties for fraudulent investment schemes, aiming to safeguard Nigerians from financial scams and systemic risks.
Boosting Investor Confidence and Economic Growth
The ISA 2024 is expected to enhance Nigeria’s investment landscape by attracting both domestic and international capital. With a stronger regulatory foundation and mechanisms to foster innovation, the Act sets the stage for economic diversification and long-term financial stability.
The SEC acknowledged the collaborative efforts of the National Assembly, the Minister of Finance, and other stakeholders in shaping the law. Their contributions have paved the way for a more robust capital market that aligns with global financial trends.
As Nigeria takes this bold step toward market reform, investors and industry players anticipate a new era of economic growth, transparency, and financial inclusion driven by the ISA 2024.
