In a landmark move, President Bola Tinubu has signed the new Investments and Securities Bill into law, ushering in a new era for Nigeria’s capital market. The Investments and Securities Act (ISA) 2025, which repeals the previous 2007 Act, introduces sweeping reforms designed to strengthen investor confidence, enhance market oversight, and align Nigeria’s financial sector with global best practices.
The Securities and Exchange Commission (SEC) hailed the presidential assent as a transformative milestone for the Nigerian capital market. In a statement released on Saturday, SEC’s Director-General, Dr. Emomotimi Agama, emphasized that the new law would position Nigeria as a competitive investment destination both locally and internationally.
“The ISA 2025 is a crucial step in building a dynamic, inclusive, and resilient capital market. It addresses regulatory gaps, empowers the SEC to foster innovation, and enhances investor protection,” Agama said. He also acknowledged the contributions of stakeholders within the capital market community and called for continued collaboration to ensure the successful implementation of the new Act.
One of the standout provisions of the ISA 2025 is the formal recognition of virtual assets, including cryptocurrencies, as securities, placing them under the regulatory oversight of the SEC. The Act also expands the definition of securities to include investment contracts, ensuring that digital asset operators and exchanges meet investor protection standards.
Additionally, the new law introduces important changes to Nigeria’s securities exchanges. It classifies exchanges into Composite and Non-Composite categories, streamlining the market and enhancing its functionality. The Act also takes a tough stance on Ponzi schemes, with harsher penalties and longer jail terms for perpetrators of fraudulent investment schemes.
The updated regulatory framework also empowers the SEC with stronger enforcement capabilities, aligning its operations with global standards set by the International Organization of Securities Commissions (IOSCO). This is expected to enhance Nigeria’s position in the global financial system.
Market experts are optimistic about the Act’s potential to provide greater clarity for investors, unlock fresh investment opportunities, and foster economic growth. The law includes provisions for commodities exchanges, warehouse receipts, and new categories of issuers, all of which are seen as game-changers for the Nigerian capital market.
The SEC has assured stakeholders that the transition from the repealed ISA 2007 to the new regulatory framework will be smooth, with planned engagements to ensure effective implementation.
The signing of the ISA 2025 is expected to boost investor confidence, strengthen market integrity, and improve systemic risk management in Nigeria’s financial sector, paving the way for sustainable growth.
The SEC also expressed gratitude to the National Assembly, the Minister of Finance, and the Minister of State for Finance for their roles in bringing the new law to fruition, noting their unwavering support and strategic guidance throughout the legislative process.
