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NIGERIAN GOVERNMENT TAKES
STEPS TO IMPROVE THE
REGULATORY FRAMEWORK OF
THE INVESTMENT AND
SECURITIES ACT (ISA) 2007.
September 2010 Vol. 23: Issue 9
In the aftermath of the meltdown of
Nigeria’s capital market, the absence of
strong regulatory framework has been
recognized as one of the contributory
factors in the unusual downturn in the
capital market. Unavoidably, Nigeria’s
weak regulatory procedures have
become the subject of scrutiny and
criticism.
Hence, it is expedient that adequate
steps be taken to sustain investor
confidence and build a Nigerian market
hinged on full disclosure. More
importantly, as we gradually emerge
from a traumatized investor period, it is
necessary to position our regulators to
protect investors.
It must be noted that unless the
regulatory and enforcement framework
of the Investments Securities Act (ISA) is
strengthened, there would be a
continued breach of securities law. In
view of this, the Federal Government of
Nigeria has resolved to transform the
capital market to a reference point in
Africa where there is investor
confidence, market integrity, sound
regulatory framework and international
standards of corporate governance.
©Blackfriars LLP 2010. All rights reserved. This document is for general guidance only. Definitive advice
should be sought from counsel if required. Blackfriars LLP is a Nigerian law firm with a representative
office in Toronto, Canada.
To achieve this purpose, two
committees have been set up: to review
the Investments Securities Act 2007 and;
to design a code of governance for
capital market regulators.
The terms of reference for the
committee to design the code of
corporate governance include:
1. to review current ethical and
corporate governance practices of
capital market regulators,
2. to review international best
practices regarding code of
corporate governance for capital
market regulators, and
3. to draw appropriate and relevant
code of corporate governance for
capital market regulators in
Nigeria covering all relevant
areas including their roles,
principles, ethics, guidelines and
relevant implementation of the
governance plan.
For the committee that would review
the Investments and Securities Act (ISA)
2007, the terms of reference are:
1. To review the ISA 2007 and
draw out areas requiring
amendment.
2. To review international best
practices regarding statutes
governing the operations of the
capital market and to prepare a
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draft Investment and Securities

Bill for presentation to the
National Assembly.

It is expected that the outcome of these

committees work would introduce high
standards and a strong, fair, efficient
and robust Nigerian market.

For further information, please contact:

Dr. Ikechi Mgbeoji

Email: Ikechi@blackfriars-law.com
Tel: +234 1 736 9797
Cell: +234 807 2995 1335
Fax: +1 646 536 8978

Ms. Nkay Onyeaso

Tel: +234 1 739 0397
Cell: +234 808 718 0833
Email: Nkay@blackfriars-law.com
Fax: ++1 646 536 8978

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©Blackfriars LLP 2010. All rights reserved. This document is for general guidance only. Definitive advice
should be sought from counsel if required. Blackfriars LLP is a Nigerian law firm with a representative
office in Toronto, Canada.