•Expect boost in global financial inflows
By Chinwendu Obienyi
The passage of the Investment and Securities Act (ISA) has been met with widespread approval from market stakeholders, who see it as a major step towards enhancing investor confidence and attracting more global investments into Nigeria’s capital market.
President Bola Tinubu, while signing the bill into law, emphasised that the move was aimed at strengthening capital market regulation in the country, effectively repealing ISA No. 29 of 2007.The Securities and Exchange Commission (SEC), in its reaction over the weekend, described the assent as a “transformative step and a new dawn” for Nigeria’s financial markets.
Industry experts on Monday echoed similar sentiments, highlighting that the new legislation introduces stronger regulatory oversight, greater transparency, and a more modernized framework—all of which are expected to make Nigeria a more attractive destination for both foreign and domestic investors. They further noted that the bill aligns with global best practices, ensuring a more secure and competitive investment environment. Oluropo Dada, the 13th President and Chairman of the Chartered Institute of Stockbrokers (CIS), hailed the new act as a testament to the market’s collective dedication to progress and its potential to drive economic development.
“The enactment of the Investment and Securities Act 2024 underscores the government’s commitment to fostering transparency, efficiency, and stability in our financial markets.
It introduces comprehensive reforms aimed at modernizing the regulatory framework, enhancing investor protection, and creating a more robust platform for economic growth and development. As capital market professionals, we are confident that this Act will deepen market integrity, boost investor confidence, and expand the range of investment opportunities available to Nigerians and global investors alike.”
Similarly, Sam Onukwue, Chairman of the Association of Securities Dealing Houses of Nigeria (ASHON), emphasized that the act will bolster regulatory oversight of the capital markets with a clear focus on investor protection.
“This legislation will rekindle the confidence of market stakeholders, which, in turn, will drive significant market growth in the coming years,” Onukwue said.
In his submission, Eguarekhide Longe, Managing Director of NASD, noted that investor protection has always been at the heart of capital market operations, and the new Act further reinforces this commitment.
“With the rise of digital financial products and the growing interest of younger investors, our regulatory framework must evolve. The signing of this Act into law provides the foundation for better investor protection, fraud detection, recognition of virtual assets as securities, and enhanced systemic risk management.”
Also weighing in, Akin Akeredolu-Ale, Managing Director of the Lagos Commodities and Futures Exchange (LCFE), praised the growing recognition of the capital market as a key driver of economic growth.
“More people now understand that the capital market serves as the barometer of the economy. The enabling environment, particularly a strong legal framework, is the foundation for market expansion and economic prosperity. I congratulate Agama and all those who played a role in this milestone.”
With this landmark legislation, stakeholders believe Nigeria’s capital market is now better positioned to attract sustained global investments, strengthen investor trust, and support long-term economic development.