President Tinubu Signs ISA 2024 into Law

President Bola Ahmed Tinubu has signed the Investment and Securities Act (ISA) 2024 into law, ushering in a new era of regulatory reforms designed to strengthen Nigeria’s capital market, enhance investor confidence, and align the country’s financial system with global standards.

The new legislation, which repeals the Investment and Securities Act of 2007, grants the Securities and Exchange Commission (SEC) expanded regulatory powers, reinforcing its position as Nigeria’s apex capital market authority.

Describing the Act as a landmark achievement, Dr. Emomotimi Agama, Director-General of SEC, noted that it addresses long-standing regulatory gaps, fosters financial innovation, and strengthens market integrity.

By becoming a signatory to the International Organisation of Securities Commissions (IOSCO) Enhanced Multilateral Memorandum of Understanding (EMMoU), Nigeria reaffirms its commitment to international market regulations. This step, he emphasized, will improve Nigeria’s appeal to global investors and ensure the country remains competitive in the African financial landscape.

One of the most significant provisions of ISA 2024 is the classification of exchanges into Composite and Non-Composite markets, a move aimed at improving market efficiency.

Additionally, the law introduces a long-awaited legal framework for digital assets, formally recognising cryptocurrency and other fintech solutions as part of Nigeria’s evolving financial ecosystem. This regulatory clarity is expected to spur innovation within the country’s thriving fintech sector while ensuring proper oversight to protect investors from speculative risks.

Beyond financial markets, the new law also provides a structured framework for commodities trading and warehouse receipts, a development that could significantly impact Nigeria’s non-oil sector. By offering businesses a well-regulated platform to trade agricultural and industrial commodities, ISA 2024 is expected to boost economic diversification efforts, reduce reliance on oil revenues, and enhance the stability of commodity pricing.

The Act also empowers state and local governments to raise capital through the securities market, providing an alternative financing mechanism for critical infrastructure and development projects. This provision is expected to reduce the over-reliance on federal allocations and commercial loans, opening new opportunities for private sector participation in public projects.

In addition to expanding access to capital markets, ISA 2024 strengthens investor protection measures by imposing tougher penalties on Ponzi schemes and fraudulent investment operations. With retail investors frequently falling victim to financial scams in recent years, the introduction of stricter regulations is expected to curb illicit schemes and restore public confidence in legitimate investment opportunities.

With Nigeria’s capital market capitalisation currently exceeding ₦50 trillion, the introduction of ISA 2024 comes at a crucial time. The reforms embedded in the law are expected to stimulate market growth, attract foreign direct investment, and deepen domestic participation. Analysts believe that the law’s success will largely depend on SEC’s enforcement of its provisions and the responsiveness of market operators to the new regulatory landscape.

While the broader global investment climate remains uncertain, Nigeria’s capital market has taken a decisive step toward greater transparency, efficiency, and investor confidence. In strengthening regulatory oversight and creating an environment conducive to financial innovation, ISA 2024 positions Nigeria as one of Africa’s most competitive capital market destinations, setting the stage for sustained economic growth in the years ahead.