President Bola Tinubu has signed the Investments and Securities Act (ISA) 2024, replacing the previous Act from 2007. The new legislation enhances investor protection, strengthens the regulatory framework of the Nigerian capital market, and introduces critical reforms to align with global standards. SEC Director-General Dr. Emomotimi Agama highlights its potential to foster innovation and economic growth.
President Bola Tinubu has enacted the Investments and Securities Act (ISA) 2024, replacing the previous ISA No. 29 of 2007. This significant legislation aims to strengthen Nigeria’s capital market by enhancing investor protection and promoting market integrity and transparency. The Securities and Exchange Commission (SEC) states that the new Act reinforces its role as the primary regulatory authority within the capital market.
ISA 2024 introduces provisions to align Nigeria’s market operations with global best practices. SEC Director-General Dr. Emomotimi Agama heralds this development as transformative, asserting the Act allows SEC to address regulatory gaps, promote innovation, and enhance Nigeria’s competitiveness in attracting investments.
Agama commended the collaborative efforts of stakeholders and the National Assembly for their commitment to enacting this new legal framework. He acknowledged the support of the Finance Ministry and emphasized the importance of continued cooperation for the effective implementation of ISA 2024.
The Act enhances SEC’s regulatory powers to be on par with leading global securities regulators, enabling SEC to maintain its “Signatory A” status under IOSCO’s Enhanced Multilateral Memorandum of Understanding. Key features include the classification of securities exchanges into Composite and Non-composite Exchanges and provisions for Financial Market Infrastructures like Central Counter Parties and Clearing Houses.
ISA 2024 explicitly recognizes digital assets as securities, placing Virtual Asset Service Providers and Digital Asset Operators under SEC regulations. It also includes measures for managing systemic risk, new regulations for Commodities Exchanges, and greater flexibility for Sub-Nationals raising funds from the capital market. Furthermore, the mandatory use of Legal Entity Identifiers aims to enhance transparency across transactions.
The Act strictly prohibits Ponzi schemes and sets severe penalties for promoters, alongside amending key provisions relating to tribunal composition and jurisdiction to improve operational effectiveness. This comprehensive reform is set to bolster investor confidence and foster economic growth in Nigeria’s capital market.
The enactment of the Investments and Securities Act (ISA) 2024 marks a pivotal moment for Nigeria’s capital market, reinforcing investor protection and market integrity. By aligning with international best practices, the Act enhances SEC’s regulatory powers and introduces critical reforms, particularly regarding digital assets and systemic risk management. Overall, this legislation aims to establish Nigeria as an attractive destination for local and foreign investments and foster a more transparent financial environment.
Original Source: nannews.ng
