President Bola Ahmed Tinubu Approves ISA 2024 to Strengthen Nigeria’s Capital Market
President Bola Ahmed Tinubu has officially signed the amended Investment and Securities Act (ISA) 2024 into law, marking a significant milestone for Nigeria’s financial sector.
Key Provisions and Impact of ISA 2024
The Securities and Exchange Commission (SEC) confirmed the enactment, emphasizing that this groundbreaking legislation enhances the legal framework governing Nigeria’s capital market. It aims to boost investor protection, improve transparency, and implement vital reforms that will promote sustainable economic growth.
According to the SEC, the newly amended Act aligns Nigeria’s financial market operations with global best practices, reinforcing regulatory oversight and market integrity.
Enhanced Powers for the Securities and Exchange Commission (SEC)
The ISA 2024 grants the SEC expanded regulatory authority, bringing it in line with leading global securities regulators. The Act ensures Nigeria’s compliance with the International Organization of Securities Commissions’ (IOSCO) Enhanced Multilateral Memorandum of Understanding (EMMoU). This alignment allows the SEC to maintain its prestigious “Signatory A” status, bolstering investor confidence and the attractiveness of the Nigerian capital market.
Key Amendments in the Investment and Securities Act 2024
- Classification of Securities Exchanges: The Act differentiates between Composite and Non-Composite Exchanges. Composite Exchanges allow the listing and trading of all categories of securities and products, while Non-Composite Exchanges specialize in specific types of securities.
- Financial Market Infrastructures (FMI): The legislation incorporates new provisions governing Central Counter Parties (CCP), Clearing Houses, and Trade Depositories, ensuring enhanced operational efficiency and security.
SEC’s Vision for a Robust Capital Market
Dr. Emomotimi Agama, Director-General of the SEC, hailed the approval of ISA 2024 as a pivotal advancement in strengthening Nigeria’s financial ecosystem. He stated:
“The enactment of this Act demonstrates our dedication to fostering a dynamic, inclusive, and resilient capital market. By addressing regulatory gaps and integrating progressive measures, ISA 2024 positions Nigeria as a premier investment destination for both local and international stakeholders.”
Further Reading & Related Resources
For additional insights on global securities regulations and investment market trends, visit the International Organization of Securities Commissions (IOSCO).
With these reforms, Nigeria’s investment landscape is set to experience increased efficiency, security, and international recognition.
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