President Bola Tinubu, during the week, signed the Investment and Securities Act (ISA) 2024 into law, repealing the Investments and Securities Act No. 29 of 2007 and introducing a more robust legal and regulatory framework for Nigeria’s capital market.
The Act expands the regulatory powers of the Securities and Exchange Commission (SEC) to align with global standards, enabling Nigeria to attract more investments and integrate into new financial markets.
It also establishes a legal framework for financial market infrastructures such as clearinghouses, trade depositories, and central counterparties, ensuring greater transparency, efficiency, and stability in capital market operations.
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Additionally, the Act allows state governments and sub-national entities to access capital markets for infrastructure financing, reducing reliance on federal allocations and providing alternative funding sources for development projects.
Designed to stimulate growth in agriculture, mining, and commodity-dependent industries, the Act introduces structured financing mechanisms to mitigate risks and attract more investments in these sectors.
Furthermore, it provides a clear legal framework for digital assets, including cryptocurrency trading, by setting guidelines and penalties for digital asset operations, ensuring investor protection and regulatory oversight.
The passage of the ISA 2024 signals the Tinubu administration’s commitment to economic reform and capital market development, positioning Nigeria for increased foreign investment, deeper financial markets, and greater economic growth.
