President Bola Tinubu signed the Investments and Securities Act (ISA) 2024 into law, replacing the previous 2007 Act. This new legislation enhances investor protection, fortifies regulatory frameworks, and incorporates key reforms to align Nigeria’s capital market with global standards. The Act introduces essential provisions including the classification of Exchanges, recognition of digital assets, and measures to manage systemic risk, enhancing SEC’s authority and promoting a more competitive economic environment.
President Bola Tinubu has formally approved the Investments and Securities Act (ISA) 2024, which repeals the previous Investments and Securities Act No. 29 of 2007. This pivotal legislation aims to enhance the legal framework within the Nigerian capital market, ensuring improved investor protection while incorporating essential reforms designed to foster market integrity, transparency, and sustainable growth.
The Securities and Exchange Commission (SEC) confirmed that the enactment of ISA 2024 reinforces its stature as the principal regulatory authority overseeing Nigeria’s capital market. The new Act comprises transformative provisions that bring the country’s market practices in closer alignment with established international standards.
Dr. Emomotimi Agama, the Director-General of the SEC, commended the President’s approval as a significant advancement for the capital market. He remarked that the ISA 2024 exemplifies Nigeria’s commitment to an innovative, inclusive, and robust capital market, addressing prior regulatory gaps and empowering SEC in the process.
The SEC’s appreciation extends to all parties involved in the legislative process for their collective effort in achieving this milestone. Agama emphasized the cooperation between the National Assembly, the Ministry of Finance, and other stakeholders, which was pivotal in aligning the new Act with Nigeria’s overarching economic goals.
The newly promulgated Act enhances SEC’s regulatory capabilities, positioning it in accordance with global securities regulatory standards specified by IOSCO’s Enhanced Multilateral Memorandum of Understanding (EMMoU). This compliance reaffirms SEC’s status as a distinguished global securities regulator.
Among the significant provisions of ISA 2024 are the classification of Exchanges into Composite and Non-composite types, as well as the introduction of regulations for Financial Market Infrastructures, including Central Counter Parties and Clearing Houses. The Act further recognizes virtual and digital assets as securities, obligating relevant service providers under SEC’s regulatory framework.
Noteworthy provisions also address systemic risk management in the capital market and expand issuer categories to facilitate innovative financial products and services. The Act emphasizes the necessity for Legal Entity Identifiers (LEIs) in securities transactions, promoting operational transparency while explicitly prohibiting Ponzi and other fraudulent investment schemes.
Furthermore, amendments to crucial provisions from the ISA 2007 aim to enhance the Tribunal’s operational efficiencies, particularly regarding the composition, appointment of the Chief Registrar, and its jurisdictional scope to facilitate better oversight of the capital market. This comprehensive restructuring promotes a more secure investment environment and underscores Nigeria’s dedication to progressive economic policies.
In conclusion, President Bola Tinubu’s enactment of the Investments and Securities Act 2024 marks a significant advancement in the regulatory landscape of Nigeria’s capital market. The Act aims to improve investor protection, align with international standards, and introduce innovative market practices. Noteworthy enhancements include the recognition of digital assets, expanded regulatory powers, and mechanisms to mitigate systemic risks. Collectively, these measures position Nigeria to foster greater investor confidence and attract both domestic and foreign investments, paving the way for a resilient economic future.
Original Source: nannews.ng
