Tinubu Signs Investments and Securities Bill into Law, Boosting Nigeria’s Capital Market –

President Bola Tinubu has signed the Investments and Securities Bill into law, providing a robust regulatory framework for Nigeria’s capital market. This milestone marks a significant step towards enhancing investor confidence, strengthening market oversight, and aligning Nigeria’s financial markets with global best practices.
The new Investments and Securities Act 2024 repeals the Investments and Securities Act 2007 and introduces key reforms, including:
Formal recognition of virtual assets: Cryptocurrencies and other digital assets are now recognized as securities, bringing them under the regulatory oversight of the Securities and Exchange Commission (SEC).
Expanded definition of securities: Investment contracts are now included in the definition of securities, ensuring that digital asset operators, exchanges, and service providers comply with investor protection standards.
Classification of securities exchanges: Exchanges are now categorized into Composite and Non-Composite Exchanges, with the former allowing all categories of securities and the latter focusing on specific types of financial instruments.
Stricter measures against Ponzi schemes: The Act prescribes stringent jail terms and sanctions for promoters of fraudulent investment programs.
Market analysts have welcomed the new law, saying it will provide greater clarity for investors and deepen Nigeria’s capital market. The SEC has assured stakeholders of a seamless transition to the new regulatory framework, with engagements planned to ensure smooth implementation.
This development is expected to enhance market integrity and systemic risk management, boost investor confidence in Nigeria’s financial sector, and position it for sustainable expansion in the years ahead.