Tinubu signs Investments, Securities Act 2024, prescribes jail term for Ponzi scheme promoters

President Bola Ahmed Tinubu has signed into law the Investments and Securities Act (ISA) 2024, which repealed the Investments and Securities Act No. 29 of 2007.

The Securities and Exchange Commission, SEC, disclosed this in a statement on Saturday.

The enactment of the ISA 2024 reaffirms the authority of the SEC as the apex regulatory authority of the Nigerian capital market.

SEC explained that the landmark legislation would strengthen the legal framework of the Nigerian capital market, enhance investor protection, and introduce critical reforms to promote market integrity, transparency, and sustainable growth.

Similarly, the Act expressly prohibits Ponzi schemes and other unlawful investment schemes, while prescribing stringent jail terms and other sanctions for the promoters of such schemes.

Accordingly, the new Act also introduces transformative provisions to further align Nigeria’s market operations with international best practice.

The statement reads, “The Securities and Exchange Commission (SEC) is pleased to announce that resident Bola Tinubu has assented to the Investments and Securities Act (ISA) 2024, which repeals the Investments and Securities Act No. 29 of 2007.”;

Commenting on the development, Dr. Emomotimi Agama, Director-General of the SEC, lauded the President’s assent as a transformative step for the capital market.

Agama said, “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 competitive destination for local and foreign investments”, he stated.

DAILY POST gathered that some of the salient provisions of the new act address existing restrictions in respect of raising funds from the capital market by sub-nationals to allow for greater flexibility in this regard.

Also, the Act introduces the mandatory use of legal entity identifiers (LEIs) by participants in capital market transactions.