The Traffic

How Tinubu’s New Securities Act is Reshaping Nigeria’s Investment Landscape

By Achimi muktar 

ABUJA – In a move set to redefine Nigeria’s financial market, President Bola Ahmed Tinubu has signed the amended Investment and Securities Act (ISA) 2024 into law, ushering in a new era of investor protection, market integrity, and regulatory advancements.

The Securities and Exchange Commission (SEC) hailed the new legislation as a groundbreaking step towards strengthening the legal framework of Nigeria’s capital market. “This landmark legislation enhances investor protection, introduces critical reforms, and aligns Nigeria’s market operations with international best practices,” the commission stated.

What’s Changing?

The ISA 2024 significantly expands SEC’s regulatory powers to match global standards, ensuring Nigeria remains competitive in the international investment landscape. The Act also secures the SEC’s status as a “Signatory A” member of the International Organization of Securities Commissions’ (IOSCO) Enhanced Multilateral Memorandum of Understanding (EMMoU), reinforcing Nigeria’s commitment to market transparency and security.

One of the most transformative provisions is the classification of exchanges into Composite and Non-Composite Exchanges:

Composite Exchanges: Platforms where multiple categories of securities and products can be listed and traded.

Non-Composite Exchanges: Specialized exchanges that focus on a single type of security or product.

Additionally, the Act introduces comprehensive regulations on Financial Market Infrastructures, including Central Counter Parties, Clearing Houses, and Trade Depositories—key institutions that enhance market stability and efficiency.

A Bold Step for Investors

Reacting to the milestone, SEC Director-General Dr. Emomotimi Agama described the President’s assent as a game-changer for Nigeria’s capital market.

“The ISA 2024 reflects our commitment to building a dynamic, inclusive, and resilient capital market. By addressing regulatory gaps and introducing forward-looking provisions, the new Act empowers the SEC to foster innovation, protect investors more efficiently, and reposition Nigeria as a top investment hub,” he stated.

With these sweeping reforms, Nigeria’s capital market is poised to attract increased local and foreign investment, offering a safer and more transparent environment for economic growth. Investors, stakeholders, and market players are now watching closely to see how these changes will shape the future of finance in Africa’s largest economy.