President Bola Tinubu has given his assent to the amended Investment and Securities Act (ISA) 2024, marking a significant development in Nigeria’s financial sector.
The Securities and Exchange Commission (SEC) announced the approval, emphasizing that the revised legislation bolsters the legal framework of the Nigerian capital market.
It aims to enhance investor protection while introducing reforms that promote market integrity, transparency, and sustainable growth.
According to the SEC, “The new Act also introduces transformative provisions to further align Nigeria’s market operations with international best practices.”
The updated ISA enhances the SEC’s regulatory authority, bringing it in line with global securities regulators.
With these new provisions, the SEC ensures full compliance with the International Organization of Securities Commissions’ (IOSCO) Enhanced Multilateral Memorandum of Understanding (EMMoU).
This alignment allows Nigeria’s SEC to retain its ‘Signatory A’ status, reinforcing the attractiveness of the country’s capital market to investors.
The amended Act introduces several critical changes, including:
Classification of Exchanges: The law differentiates Securities Exchanges into Composite and Non-Composite categories.
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Composite Exchanges facilitate the listing and trading of all securities, while Non-Composite Exchanges specialize in a specific type of security or product.
Financial Market Infrastructures: New provisions address Central Counter Parties, Clearing Houses, and Trade Depositories, ensuring efficient market operations and risk mitigation.
Dr. Emomotimi Agama, Director-General of the SEC, hailed the legislation as a game-changer for Nigeria’s financial sector.
“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 stated.
With these reforms, Nigeria is set to strengthen its capital market landscape, attract more investors, and ensure robust financial market operations.