President Bola Tinubu has provided presidential approval to the Investments and Securities Bill, thereby establishing a comprehensive regulatory framework for Nigeria’s capital market.
According to a statement issued by the Securities and Exchange Commission this Saturday, the newly enacted Investments and Securities Act 2024 supersedes the Investments and Securities Act 2007 and introduces pivotal reforms designed to bolster investor confidence, reinforce market oversight, and align Nigeria’s financial markets with globally recognized best practices.
Commenting on this significant achievement, the Director-General of the Securities and Exchange Commission, Dr. Emomotimi Agama, commended the President’s assent as a transformative step for the capital market.
“The ISA 2024 embodies our dedication to cultivating a dynamic, inclusive, and resilient capital market. By addressing regulatory deficiencies and introducing forward-thinking provisions, the new Act empowers the SEC to stimulate innovation, enhance investor protection, and reposition Nigeria as a competitive destination for both domestic and international investments.
“We extend our gratitude to all stakeholders within and beyond the capital market community for their unwavering solidarity in achieving this historic milestone and solicit their continued collaboration in the effective implementation of the ISA 2024 for the benefit of our economy,” he stated.
Some of the key reforms include the formal recognition of virtual assets, such as cryptocurrencies, as securities, thereby bringing them under the regulatory purview of the SEC. The Act also broadens the definition of securities to encompass investment contracts, ensuring that digital asset operators, exchanges, and service providers adhere to investor protection standards.
The Act categorizes securities exchanges into Composite and Non-Composite Exchanges, with the former permitting all categories of securities, while the latter focuses on specific types of financial instruments. It also introduces more stringent measures to combat Ponzi schemes, prescribing rigorous jail terms and sanctions for promoters of fraudulent investment programs.
Furthermore, the law strengthens the SEC’s enforcement capabilities and aligns its regulatory structure with the standards of the International Organization of Securities Commissions, thereby enhancing Nigeria’s standing within the global financial system.
Market analysts have welcomed the new legislation, stating that 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 anticipated to enhance market integrity and systemic risk management and elevate investor confidence in Nigeria’s financial sector, positioning it for sustainable expansion in the years to come.
Meanwhile, the SEC expresses 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 realization 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 the SEC.
