President Bola Tinubu has given his assent to the Investments and Securities Act (ISA) 2024, repealing the Investments and Securities Act No. 29 of 2007.

The new legislation strengthens Nigeria’s capital market framework, enhances investor protection, and introduces critical reforms to promote market integrity, transparency, and sustainable growth.

In a statement issued on Saturday, the Securities and Exchange Commission (SEC) said the enactment of the ISA 2024 reaffirms its authority as the apex regulatory body of the Nigerian capital market.

“The Securities and Exchange Commission (SEC) is pleased to announce that President Bola Tinubu has assented to the Investments and Securities Act (ISA) 2024, which repeals the Investments and Securities Act No. 29 of 2007,” the statement read.

Commenting on the development, SEC Director-General, Dr Emomotimi Agama, described the President’s assent as a transformative milestone for the capital market.

“The ISA 2024 underscores our commitment to building a dynamic, inclusive, and resilient capital market. By addressing regulatory gaps and introducing forward-thinking provisions, the new Act empowers SEC to foster innovation, protect investors more effectively, and reposition Nigeria as a competitive destination for local and foreign investments,” Agama said.

He commended stakeholders within and outside the capital market for their unwavering support in achieving the historic milestone, urging continued collaboration for the Act’s effective implementation.

SEC also extended appreciation to the National Assembly for its patriotism and commitment to enacting a robust legal framework for the capital market. Agama noted that the legislative process, marked by extensive stakeholder engagement and bipartisan support, demonstrated lawmakers’ resolve to foster economic growth and boost investor confidence.

“We also acknowledge the Honourable Minister of Finance and Coordinating Minister of the Economy, alongside the Minister of State for Finance, for their invaluable contributions. Their strategic guidance, policy expertise, and steadfast support have ensured that the ISA 2024 aligns with Nigeria’s broader economic objectives,” he added.

The News Agency of Nigeria (NAN) reports that the Act enhances the SEC’s regulatory powers in line with global best practices. These provisions ensure compliance with the International Organisation of Securities Commissions’ (IOSCO) Enhanced Multilateral Memorandum of Understanding (EMMoU), allowing SEC to retain its “Signatory A” status and further boost the Nigerian capital market’s appeal.

Among the notable provisions of the ISA 2024 is the classification of Exchanges into Composite and Non-Composite categories. A Composite Exchange accommodates all securities and products, while a Non-Composite Exchange focuses on a singular type of security or product.

Additionally, the Act introduces regulatory provisions for Financial Market Infrastructures, including Central Counterparties, Clearing Houses, and Trade Depositories. It explicitly recognises virtual and digital assets as securities, bringing Virtual Asset Service Providers (VASPs), Digital Asset Operators (DAOPs), and Digital Asset Exchanges under SEC’s oversight.

The new law also exempts transactions involving Financial Market Infrastructures from general insolvency laws and introduces mechanisms for monitoring, managing, and mitigating systemic risks in the capital market.

Other key aspects of the Act include expanded issuer categories, enabling innovative product offerings, and flexible capital-raising provisions for sub-national entities. It also mandates the use of Legal Entity Identifiers (LEIs) in capital market transactions to enhance transparency.

Furthermore, the ISA 2024 explicitly criminalises Ponzi schemes and other fraudulent investment schemes, prescribing stringent penalties, including jail terms, for offenders. It amends key provisions in the repealed ISA 2007, including the composition and jurisdiction of the Investment and Securities Tribunal, to enhance its efficiency in resolving capital market disputes.

The SEC assured stakeholders of continued engagement to ensure a smooth transition from the repealed ISA 2007 to the new legal regime, reinforcing investor confidence and market stability.