The Nigerian Senate has passed the Investments and Securities Bill (ISB) 2024, a legislative framework aimed at enhancing the regulation of the capital market, bolstering investor confidence, and attracting foreign investments.
The bill, which repeals the Investments and Securities Act of 2007, seeks to align Nigeria’s capital market with global standards and protect investors from fraudulent practices.
Senate President Godswill Akpabio, while announcing the bill’s passage, emphasised its importance in reducing investment risks and fostering economic growth.
“A lot of people would be happy to infuse funds into the capital market when they know a lot of the risk has been minimized,” Akpabio stated.
The bill introduces stricter penalties for operators of Ponzi and pyramid schemes, mandating fines of at least N20 million or imprisonment for up to 10 years, or both.
Speaking on this provision, Director General of the Securities and Exchange Commission (SEC), Emomotimi Agama, stated, “This bill explicitly prohibits Ponzi and pyramid schemes, fortifying protections for investors against illegal fund managers.”
In addition, the ISB 2024 expands the scope of the Investor Protection Fund (IPF) to cover losses resulting from the deregistration of brokerage firms beyond its existing remit of negligence or bankruptcy cases.
