The Federal Government has signed the Investments and Securities Act (ISA) 2024 into law, establishing a more modern and robust regulatory framework for the Nigerian capital market. The new legislation repeals the Investments and Securities Act of 2007 and introduces key reforms aimed at enhancing investor protection, improving regulatory oversight, and aligning the market with global standards.
According to a statement released by the Securities and Exchange Commission (SEC), the Act classifies securities exchanges into two categories: Composite Exchanges, which are permitted to trade all types of securities, and Non-Composite Exchanges, which are limited to specific financial instruments.
The Act also imposes stricter penalties on promoters of Ponzi schemes, reinforcing the Federal Government’s commitment to cracking down on fraudulent investment operations.
In a forward-looking move, the law recognizes virtual assets such as cryptocurrencies as securities, bringing them under SEC regulation. The definition of securities has been expanded to include investment contracts, ensuring that digital asset platforms are subject to regulatory oversight and investor protection rules.
The Federal Government’s enactment of the ISA 2024 is expected to create a more transparent, inclusive, and globally competitive capital market, while encouraging innovation and sustainable economic growth.
