The Nigerian capital market was born in 1946 with the insurance of Nigeria’s first development loan stock which had its maturity with the establishments of the Lagos stock exchange in 1960.
A capital issue committee was established in 1962 to mobilize funds for economic development and later upgraded to the capital issue commission in 1979 when the securities and exchange commission Decree was promulgated. With the success achieved so far, there was a need to expand the capital market further. Hence, the establishment of the second Tier securities market (SSM) in 1985. The decree guiding its activities was re-enacted in 1988 as the securities and exchange commission Decree No 29. This is so in order to make provision for developing the capital market further and also to protect the investors.
The stock exchange decree of 1988 was replaced with the investment securities Act (ISA) No. 45 of 1999 to make provision for a more efficient and viable capital market. The SEC decree of 1988 was replaced with the “investment securities Act” (ISA). 54 of 1999 to provide for a more efficient and viable capital market that could meet Nigeria’s economic development needs. The ISA of 1999 re-established the securities and exchange commission (SEC) as a body corporate with perpetual successor and a common seal, that can sue and be sued in its corporate name. This SEC which is a regulatory apex organization of the Nigeria Capital Market was translated or re-established in 1979.