President Bola Tinubu has signed the Investments and Securities Bill into law, introducing a robust regulatory framework aimed at enhancing Nigeria’s capital market.
In a statement released on Saturday by the Securities and Exchange Commission (SEC), the new Investments and Securities Act (ISA) 2024 repeals the 2007 version, bringing key reforms designed to boost investor confidence, strengthen market oversight, and align the financial markets with global best practices.
SEC Director-General, Dr. Emomotimi Agama, hailed the signing of the bill as a transformative step. “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.”
Agama also acknowledged the collaborative efforts of stakeholders in achieving this milestone. “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.”
Key provisions of the new law include the formal recognition of virtual assets such as cryptocurrencies as securities, bringing them under SEC’s regulatory oversight. It also broadens the definition of securities to include investment contracts, ensuring compliance with investor protection standards by digital asset operators, exchanges, and service providers.
The Act categorizes securities exchanges into Composite and Non-Composite Exchanges, with the former allowing all types of securities and the latter specializing in specific financial instruments. It also introduces stringent penalties for Ponzi scheme operators, imposing strict jail terms and sanctions for fraudulent investment schemes.
Additionally, the law strengthens SEC’s enforcement powers, aligning its regulatory framework with the International Organization of Securities Commissions (IOSCO) standards to bolster Nigeria’s position in the global financial system.
Market analysts have welcomed the legislation, noting that it will enhance investor confidence 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 drive economic growth.
The SEC has assured stakeholders of a seamless transition from the repealed ISA 2007 to the new framework, with engagements planned to facilitate smooth implementation. The development is expected to boost market integrity, improve systemic risk management, and position Nigeria’s financial sector for sustainable expansion.
Meanwhile, the SEC expressed its gratitude to the National Assembly for enacting the legislation. “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.”
The Commission also commended the Minister of Finance and the Minister of State for Finance for their contributions, stating, “Their strategic guidance, policy expertise, and steadfast support have ensured that the ISA 2024 aligns with Nigeria’s broader economic objectives.”
