THE INVESTMENTS AND SECURITIES ACT, 2007

An Act establishes the Securities and Exchange Commission as the regulator of the Nigerian capital market and sets rules for securities issuance and market intermediaries. It targets capital market operators, public companies, and investors. This promotes a transparent and efficient market for economic development.

What Is This Policy?

The principal legislation governing the Nigerian capital market, establishing the Securities and Exchange Commission (SEC) as the apex regulator, prescribing rules for securities issuance, investment firms, and market intermediaries.

Who Does It Target?

All capital market operators (broker-dealers, fund managers, registrars) Public companies issuing securities to the public Investors in stocks, bonds, and collective investment schemes The Securities and Exchange Commission as regulator

What Does It Aim to Achieve?

Develop a robust, transparent, and well-regulated capital market that efficiently allocates resources, protects investors, and supports Nigeria's economic development.

Key Features

SEC Establishment: Creates the Securities and Exchange Commission as the apex regulator with powers to register, supervise, and sanction all capital market actors. Securities Regulation: Requires all public securities offers to be registered with SEC and approved before being offered to the public. Collective Investment Schemes: Regulates mutual funds, unit trusts, and other collective investment vehicles. Market Conduct: Prohibits market manipulation, insider trading, and other forms of securities fraud.

Current Status

Rollout Stage: Largely replaced by ISA 2025; historical provisions remain relevant for legacy matters Coverage: Nigerian capital market Beneficiaries: Investors; capital market integrity; Nigerian economy Funding: SEC levies on market transactions

How to Access

Capital market operators must be registered with SEC under ISA Securities offers must be registered and prospectuses approved before public issuance Refer to ISA 2025 for current regulatory requirements Application method: Engage SEC at https://www.sec.gov.ng for current capital market requirements.

Important Terms

ISA 2007 has been superseded by the Investments and Securities Act 2025 Key provisions including insider trading prohibition continue under the 2025 Act Historical enforcement actions under ISA 2007 are not affected by the new Act

Official Resources

Website: https://www.sec.gov.ng Contact: Securities and Exchange Commission (SEC) Nigeria

Legal Framework

Enacted under the legislative powers of the National Assembly vested by Section 4 of the 1999 Constitution (as amended). The Investments and Securities Act 2007 was the principal statute until its repeal and replacement by the Investments and Securities Act 2025. Operates alongside the Companies and Allied Matters Act (CAMA) 2020, the CBN Act 2007, the Banks and Other Financial Institutions Act (BOFIA) 2020, and IOSCO principles on securities regulation.