President Tinubu Assents To ISA 2024: Boost For Capital Markets And Investors

The Securities and Exchange Commission (SEC) confirmed the assent in a statement on Saturday, highlighting the law’s alignment with global best practices and its potential to revolutionize the market.

The new ISA 2024 reinforces the SEC’s role as the primary regulatory authority overseeing Nigeria’s capital market. According to the SEC, the legislation consolidates the SEC’s position and introduces reforms that align Nigeria’s market with international standards.

“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 SEC to foster innovation, better protect investors, and reposition Nigeria as a competitive hub for both local and foreign investments,” said Dr. Emomotimi Agama, SEC’s Director-General.

Agama also extended his thanks to all stakeholders, including the National Assembly, for their collaborative efforts in making the legislation a reality. He urged continued collaboration for the successful implementation of ISA 2024 to benefit the economy.

Key reforms in the ISA 2024 include:

• Classification of Exchanges: The Act creates distinctions between “Composite” and “Non-composite” exchanges based on the types of securities they handle.

• Virtual and Digital Assets: For the first time, the Act recognizes virtual and digital assets as securities and brings Virtual Asset Service Providers (VASPs), Digital Asset Operators (DAOPs), and exchanges under SEC’s regulatory purview.

• Financial Market Infrastructure: The Act introduces provisions for essential financial market infrastructures like Central Counterparties, Clearing Houses, and Trade Depositories.

• Legal Entity Identifiers (LEIs): It mandates the use of LEIs by capital market participants to enhance transparency in securities transactions.

• Ponzi and Unlawful Schemes: The Act expressly bans Ponzi schemes and illegal investments, imposing severe penalties, including imprisonment for promoters.

Other highlights of ISA 2024 include regulating Commodities Exchanges and Warehouse Receipts to develop Nigeria’s commodities sector and providing greater flexibility for sub-national governments to raise funds for development projects. Additionally, the Act includes amendments to the tribunal responsible for handling capital market disputes, aimed at improving its efficiency.

Dr. Agama concluded that the ISA 2024 represents a bold leap forward for Nigeria’s capital market, setting the stage for greater global competitiveness.