Tinubu Approves Investments and Securities Act 2024 – Report
Nigeria’s President Bola Tinubu has recently signed into law the Investments and Securities Act (ISA) 2024, marking a significant milestone in the country’s capital market regulation. The new Act supersedes the Investments and Securities Act No. 29 of 2007, introducing crucial reforms to strengthen the legal framework of the Nigerian capital market, enhance investor protection, and promote market integrity, transparency, and sustainable growth.
The Securities and Exchange Commission (SEC) released a statement affirming the authority of the SEC as the apex regulatory body of the Nigerian Capital Market following the enactment of the ISA 2024. The new legislation also aligns Nigeria’s market operations with international best practices, further solidifying the country’s standing in the global financial landscape.
Dr Emomotimi Agama, Director-General of the SEC, commended President Tinubu’s assent to the ISA 2024 as a transformative move for the capital market, emphasizing the Act’s commitment to building a dynamic, inclusive, and resilient financial sector. The new Act empowers the SEC to foster innovation, protect investors more effectively, and position Nigeria as a competitive destination for local and foreign investments. Agama expressed gratitude to stakeholders for their support and emphasized the importance of collaborative efforts in implementing the ISA 2024 for the benefit of the economy.
The meticulous deliberations and stakeholder engagements preceding the passage of the ISA 2024 highlighted the National Assembly’s dedication to fostering economic growth and enhancing investor confidence. Agama acknowledged the contributions of the honorable Minister of Finance and Coordinating Minister of the Economy, as well as the Minister of State for Finance, in realizing this historic achievement. The SEC will continue to engage with market operators and stakeholders to ensure a seamless transition to the new legal regime established under the ISA 2024.
The Act significantly enhances the regulatory powers of the SEC to align with global standards, ensuring compliance with IOSCO’s Enhanced Multilateral Memorandum of Understanding (EMMoU) and bolstering the attractiveness of the Nigerian capital market. Among the pivotal provisions of the ISA 2024 are the classification of securities exchanges into composite and non-composite exchanges, recognition of virtual assets as securities, and regulation of Commodities Exchanges and Warehouse Receipts.
The Act introduces measures to improve transparency in capital market transactions, including the mandatory use of Legal Entity Identifiers (LEIs) by participants. It also prohibits ponzi schemes and other unlawful investment activities, prescribing stringent penalties for offenders. Amendments to key provisions from the previous ISA 2007 aim to enhance the efficiency of the tribunal’s mandate in resolving disputes within the capital market.
Overall, the signing of the Investments and Securities Act (ISA) 2024 into law represents a significant milestone for Nigeria’s capital market regulation, signaling a new era of transparency, investor protection, and sustainable growth in the financial sector. The transformative provisions introduced in the Act align Nigeria’s market operations with global best practices, positioning the country as a competitive destination for both local and foreign investments.