President Bola Tinubu has signed the Investments and Securities Act (ISA) 2025 into law, repealing the previous Investments and Securities Act No. 29 of 2007.
The new legislation aims to strengthen Nigeria's capital market framework, boost investor protection, and introduce key reforms to enhance transparency, market integrity, and sustainable growth.
The Securities and Exchange Commission (SEC) confirmed the development in a statement on Saturday, noting that the ISA 2025 reaffirms the SEC's role as the apex regulator of the Nigerian capital market. The Act also aligns Nigeria’s market operations with global best practices.
SEC Director-General Dr. Emomotimi Agama praised the President’s assent as a major milestone for the capital market, stating that the new law will foster innovation, improve investor safeguards, and position Nigeria as an attractive investment destination. He commended the National Assembly, the Minister of Finance, and other stakeholders for their contributions to the legislation.
Key provisions of the ISA 2025 include:
- Enhanced SEC Regulatory Powers – Strengthening oversight in line with international standards, including compliance with the IOSCO Enhanced Multilateral Memorandum of Understanding (EMMoU).
- Classification of Exchanges – Introducing Composite Exchanges (handling multiple securities) and Non-composite Exchanges (specializing in single security types).
- Regulation of Digital Assets – Recognizing virtual assets and investment contracts as securities, bringing digital asset operators under SEC oversight.
- Systemic Risk Management – Introducing measures to monitor and mitigate risks in the capital market.
- Commodities Market Development – Providing a regulatory framework for Commodities Exchanges and Warehouse Receipts.
- Sub-National Fundraising Flexibility – Easing restrictions on capital market fundraising by state and local governments.
- Legal Entity Identifiers (LEIs) – Mandating LEIs for market participants to improve transaction transparency.
- Ponzi Scheme Ban – Prohibiting illegal investment schemes with strict penalties for offenders.
- Investment Tribunal Reforms – Adjusting tribunal composition and jurisdiction for more efficient dispute resolution.
The SEC assured stakeholders of a smooth transition from the old law and pledged continued engagement to ensure effective implementation. The new Act is expected to boost investor confidence and drive economic growth through a more robust and innovative capital market.
Source: Securities and Exchange Commission (SEC), News Agency of Nigeria (NAN).
