President Bola Tinubu has approved the amended Investment and Securities Act (ISA) 2024, reinforcing Nigeria’s capital market with stronger legal backing.

The Securities and Exchange Commission (SEC), announcing the development, highlighted that the new legislation enhances investor protection while introducing reforms to improve market integrity, transparency, and sustainable growth.

“The new Act also introduces transformative provisions to further align Nigeria’s market operations with international best practice,” the SEC stated.

A key aspect of the amendment is the expansion of the SEC’s regulatory authority, aligning it with global securities regulators. This ensures compliance with the International Organization of Securities Commissions’ (IOSCO) Enhanced Multilateral Memorandum of Understanding (EMMoU), allowing the SEC to maintain its ‘Signatory A’ status and boosting investor confidence.

Other major provisions of ISA 2024 include a revised classification of exchanges and new regulations for Financial Market Infrastructures. The Act categorizes securities exchanges into Composite and Non-composite Exchanges—Composite Exchanges accommodate all securities and products, while Non-composite Exchanges focus on specific security types. Additionally, it establishes new guidelines for Financial Market Infrastructures, including Central Counter Parties, Clearing Houses, and Trade Depositories.

SEC Director-General Dr. Emomotimi Agama described the President’s approval as a game-changer for the capital market.

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