President Bola Tinubu has given presidential assent to the Investments and Securities Bill, thus providing for a robust regulatory framework in Nigeria’s capital market.
According to a statement issued by the Securities and Exchange Commission on Saturday, the new Investments and Securities Act 2024 repeals the Investments and Securities Act 2007 and introduces key reforms aimed at boosting investor confidence, strengthening market oversight, and aligning Nigeria’s financial markets with global best practices.
Commenting on this milestone, the Director-General of the Securities and Exchange Commission, Dr Emomotimi Agama, lauded the President’s assent as a transformative step for the capital market.
“The ISA 2024 reflects our commitment to building a dynamic, inclusive, and resilient capital market. 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.
“We commend all stakeholders within and outside the capital market community for their unwavering solidarity towards the achievement of this historic milestone and solicit their continued collaboration in respect of the effective implementation of the ISA 2024 for the benefit of our economy,” he said.
Some of the key reforms include the formal recognition of virtual assets such as cryptocurrencies as securities, bringing them under the regulatory oversight of the SEC. The Act also expands the definition of securities to cover investment contracts, ensuring that digital asset operators, exchanges, and service providers comply with investor protection standards.
The Act classifies securities exchanges into Composite and Non-Composite Exchanges, with the former allowing all categories of securities while the latter focuses on specific types of financial instruments. It also introduces stricter measures to combat Ponzi schemes, prescribing stringent jail terms and sanctions for promoters of fraudulent investment programs.
Additionally, the law enhances the SEC’s enforcement powers and aligns its regulatory structure with the International Organization of Securities Commissions standards, strengthening Nigeria’s standing in the global financial system.
Market analysts have welcomed the new law, saying it will provide greater clarity for investors and deepen Nigeria’s capital market. With provisions for commodities exchanges, warehouse receipts, and new categories of issuers, experts believe the Act will unlock fresh investment opportunities and facilitate economic growth.
The SEC has assured stakeholders of a seamless transition from the repealed ISA 2007 to the new regulatory framework, with engagements planned to ensure smooth implementation.
This development is expected to enhance market integrity and systemic risk management and boost investor confidence in Nigeria’s financial sector, positioning it for sustainable expansion in the years ahead.
Meanwhile, the SEC extends its profound appreciation to the National Assembly for its patriotism and dedication in enacting this new legal framework for the Nigerian capital market.
“The meticulous deliberations, extensive stakeholder engagements, and bipartisan support demonstrated throughout the legislative process highlight the National Assembly’s resolve to foster economic growth and enhance investor confidence.
“We also commend the Minister of Finance and Coordinating Minister of the Economy of Nigeria and the Minister of State for Finance for their invaluable contributions to the realisation of this groundbreaking project. Their strategic guidance, policy expertise, and steadfast support have ensured that the ISA 2024 aligns with Nigeria’s broader economic objectives,” concluded SEC.
