After years of legislative deliberations, rigorous stakeholder consultations, and extensive policy refinement, President Bola Tinubu officially enacted the Investment and Securities Act (ISA) 2024, repealing its 2007 predecessor.

This landmark legislation ushers in a new era of regulatory sophistication, aligning Nigeria’s capital market with global best practices and reinforcing investor confidence.

The prolonged overhaul of the ISA, shaped by political, economic, and legislative complexities, culminates in a framework designed to modernise financial market operations.

Industry experts hail this development as a pivotal milestone in fortifying investor protections, enhancing market transparency, and driving sustainable economic growth.

The Securities and Exchange Commission (SEC), now empowered with a robust mandate under the ISA 2024, asserts its role as the apex regulator, introducing sweeping reforms that redefine market dynamics.

The Act incorporates structural enhancements spanning digital assets, systemic risk management, commodity exchanges, and sub-national fundraising mechanisms, among other critical areas.

Below are ten transformative reforms encapsulated within the newly enacted ISA 2024, each poised to elevate the Nigerian capital market:

To bolster commodity-based economic activities, the Act institutionalizes a legal framework for commodity exchanges and warehouse receipt systems.

This initiative is expected to invigorate key sectors such as agriculture and mining, facilitating structured financing and mitigating market risks.

The legislation grants state and local governments enhanced flexibility to tap into capital markets for infrastructure and development financing.

This strategic shift is anticipated to reduce overreliance on federal allocations while fostering economic growth through transparent, marketdriven fundraising mechanisms.

Amidst the rising prevalence of fraudulent investment schemes, the Act introduces stringent penalties, including extended prison terms, for perpetrators of Ponzi and illegal investment operations.

This decisive move underscores the government’s commitment to protecting investors and sanitizing the financial landscape.

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The SEC is now vested with greater authority to oversee systemic risks and safeguard market stability. Transactions involving financial market infrastructure—such as clearinghouses and central counterparties—are insulated from insolvency laws, ensuring resilience against financial shocks.

The scope of the Investor Protection Fund has been broadened to compensate investors for losses incurred due to brokerage license revocations or other market disruptions.

This measure fortifies investor security and enhances confidence in Nigeria’s capital market.

By broadening the range of issuers eligible to access the public capital markets, the Act fosters financial innovation and diversity. This reform is expected to introduce novel

Market operators hailed the new law, describing it as a far cry from the repealed 2007 Act

investment instruments, deepening market participation and expanding access to capital.

Critical financial market infrastructures, including trade depositories and clearinghouses, are now exempt from generic insolvency regulations.

This provision ensures operational continuity in times of financial distress, strengthening overall market resilience.

The Act enhances the independence and operational effectiveness of the Investment & Securities Tribunal through key amendments to its composition, jurisdiction, and appointment process. These modifications are designed to accelerate dispute resolution and uphold market integrity.

In a bid to enhance transactional transparency, the ISA 2024 mandates the adoption of Legal Entity Identifiers (LEIs) by all market participants.

LEIs serve as globally recognized markers for tracing capital flows, mitigating financial crimes, and bolstering regulatory oversight.

For the first time, digital assets—including cryptocurrencies and investment contracts— are formally recognized as securities under Nigerian law.

Virtual Asset Service Providers (VASPs) and Digital Asset Operators now fall under the SEC’s regulatory purview, ensuring accountability, investor protection, and innovation within this rapidly evolving sector.

Dr. Emomotimi Agama, Director-General, SEC, lauded the Act as a catalyst for investor confidence and market development.

“The ISA 2024 embodies our commitment to fostering an innovative, resilient, and inclusive capital market. By bridging regulatory gaps and instituting forward-thinking provisions, this law positions Nigeria as a competitive hub for both domestic and foreign investments,” Agama remarked.

He also acknowledged the instrumental role played by the National Assembly, the Ministry of Finance, and other stakeholders in shaping the legislation to align with the Tinubu administration’s broader economic vision.

Commenting on the sweeping reforms, Professor Uche Uwaleke, Director of the Institute of Capital Market Studies at Nasarawa State University, described the enactment of ISA 2024 as a “game-changer” that modernizes Nigeria’s financial regulations, enhances regulatory oversight, and integrates emerging financial technologies.

Market operators hailed the new law, describing it as a far cry from the repealed 2007 Act. Renowned equities market investment analyst, David Adonri, said it is going to bolster investor confidence having addressed critical regulatory oversight and issues of concern in the market.

He emphasized the regulatory provisions relating to digital assets and cryptocurrency segment as vital to market growth in this dispensation, stressing that the SEC and all stakeholders have done a great job.

With the ISA 2024 now in effect, Nigeria’s capital market stands on the cusp of a significant transformation, poised to attract increased investments, stimulate economic expansion, and solidify its position in the global financial ecosystem, particularly the emerging market world.