Tinubu signs Investments, Securities Act 2025 into law
President Bola Tinubu has recently approved the Investments and Securities Act (ISA) 2024, marking a significant advancement in Nigeria’s capital market legal framework. This new law replaces the previous Investments and Securities Act of 2007 and aims to fortify investor protection, enhance market integrity, transparency, and sustainable growth.
The Securities and Exchange Commission (SEC) confirmed the President’s endorsement of the ISA 2024, reinforcing SEC’s role as the primary regulatory authority of the Nigerian Capital Market. The updated Act incorporates transformative measures to align Nigeria’s market practices with international standards, ensuring a more robust and competitive investment environment.
Dr. Emomotimi Agama, the Director-General of the SEC, praised the enactment of the ISA 2024, emphasizing its pivotal role in shaping a resilient and inclusive capital market. Agama highlighted the new Act’s emphasis on bridging regulatory gaps, promoting innovation, and attracting domestic and foreign investments. He acknowledged the collaborative efforts of various stakeholders in achieving this milestone, underscoring the importance of sustained engagement for the effective implementation of the ISA 2024.
The SEC expressed gratitude to the National Assembly for its diligence in crafting the new legal framework and commended the Ministers of Finance for their contributions to the project. The Act expands SEC’s regulatory authority in alignment with global standards, enabling the commission to uphold its status as a signatory to IOSCO’s Enhanced Multilateral Memorandum of Understanding (EMMoU). This enhancement is expected to boost investor confidence and elevate the Nigerian capital market’s appeal on the global stage.
The ISA 2024 introduces pivotal changes, including the categorization of Securities Exchanges as Composite and Non-composite, based on the types of securities and products they list. Additionally, the Act includes provisions on Financial Market Infrastructures, such as Central Counter Parties, Clearing Houses, and Trade Depositories, to enhance market efficiency and risk management practices.
Overall, the approval of the Investments and Securities Act 2024 represents a significant stride towards fostering a dynamic, secure, and globally competitive capital market in Nigeria. Through comprehensive regulatory reforms and stakeholder collaboration, the country aims to attract more investments, safeguard investor interests, and spur economic growth in the financial sector. The SEC remains committed to ensuring a seamless transition to the new legal framework, promoting innovation, and bolstering trust in Nigeria’s evolving capital market landscape.