President Bola Ahmed Tinubu has signed the Investment and Securities Act (ISA) 2024 into law, marking a major step in Nigeria’s capital market reform.
The new law repeals the 2007 Investment and Securities Act, reinforcing the legal and regulatory framework for investments and market activities. In a statement on Friday, the Securities and Exchange Commission (SEC) described the law as a “transformative step” toward enhancing investor protection, improving market transparency, and fostering sustainable growth.
The SEC stated that ISA 2024 reaffirms its role as the apex regulator of Nigeria’s capital market while aligning local operations with international best practices. “The ISA 2024 reflects our commitment to building a dynamic, inclusive, and resilient capital market,” said SEC Director-General Emomotimi Agama.
Key reforms include expanding the SEC’s regulatory powers to meet global standards and ensuring it maintains its “Signatory A” status under IOSCO’s Enhanced Multilateral Memorandum of Understanding (EMMoU). The law also introduces structural changes such as classifying exchanges into Composite and Non-composite categories and establishing a legal framework for digital assets, commodities, and warehouse receipts. Additionally, it empowers sub-national governments to raise capital through the market, reduces systemic risks, and imposes stiffer penalties on Ponzi schemes.
Agama praised the Act as a major boost for investor confidence. “By addressing regulatory gaps and introducing forward-looking provisions, the new Act empowers the SEC to foster innovation, protect investors more effectively, and reposition Nigeria as a competitive destination for local and foreign investments,” he said.
The SEC also acknowledged the contributions of the National Assembly, the Finance Minister, and other stakeholders in shaping the law.
ISA 2024 is expected to enhance investor protection, stimulate innovation, and promote economic diversification, making Nigeria’s capital market more attractive to both local and international investors.
