President Bola Tinubu has signed the amended Investment and Securities Act (ISA) 2024 into law, strengthening the legal framework of Nigeria’s capital market.
The Securities and Exchange Commission (SEC) announced the development, highlighting that the new legislation enhances investor protection, promotes market integrity and transparency, and introduces critical reforms for sustainable growth.
“The new Act also introduces transformative provisions to further align Nigeria’s market operations with international best practices,” the SEC stated.
The Act expands the SEC’s regulatory authority, aligning it with global securities regulators and ensuring compliance with the International Organization of Securities Commissions’ (IOSCO) Enhanced Multilateral Memorandum of Understanding (EMMoU). These enhanced powers allow the SEC to maintain its ‘Signatory A’ status, reinforcing the Nigerian capital market’s appeal to investors.
Key provisions of ISA 2024 include the classification of exchanges and the introduction of financial market infrastructure regulations. The Act designates securities exchanges as either Composite or Non-Composite. Composite Exchanges allow the listing and trading of all categories of securities, while Non-Composite Exchanges specialize in a single type of security or product. Additionally, the Act includes new regulations for Financial Market Infrastructures such as Central Counter Parties, Clearing Houses, and Trade Depositories.
Describing the Act’s passage as a landmark achievement, SEC Director-General Dr. Emomotimi Agama praised President Tinubu’s approval. “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, enhance investor protection, and reposition Nigeria as a competitive destination for local and foreign investments,” he said.
