President Bola Tinubu has signed the amended Investment and Securities Act (ISA) 2024 into law, a move aimed at strengthening Nigeria’s capital market, enhancing investor protection, and aligning market operations with international best practices.
The Securities and Exchange Commission (SEC), which announced the development, described the new law as a transformative step that enhances market transparency, integrity, and sustainable growth. It also grants the SEC regulatory powers comparable to global securities regulators, ensuring compliance with the International Organization of Securities Commissions’ (IOSCO) Enhanced Multilateral Memorandum of Understanding (EMMoU).
One of the key provisions of the ISA 2024 is the classification of securities exchanges into Composite and Non-composite Exchanges. A Composite Exchange accommodates all categories of securities and products, while a Non-composite Exchange focuses on a singular type of security or product.
Additionally, the Act introduces regulations for Financial Market Infrastructures, including Central Counter Parties, Clearing Houses, and Trade Depositories.
Commenting on the approval, SEC Director-General Dr. Emomotimi Agama hailed the law as a major reform, stating that it empowers the commission to address regulatory gaps, foster innovation, and boost investor confidence.
“The ISA 2024 reflects our commitment to building a dynamic, inclusive, and resilient capital market,” Agama said.
“By introducing forward-looking provisions, the new Act strengthens Nigeria’s position as a competitive investment destination.”
The passage of the ISA 2024 is expected to attract both local and foreign investors while ensuring the stability and efficiency of the Nigerian capital market.
