President Tinubu Approves Investments and Securities Act 2025
President Bola Tinubu has signed the Investments and Securities Act (ISA) 2025 into law, replacing the previous Act of 2007. This new legislation strengthens Nigeria’s capital market, enhances investor protection, and promotes transparency and sustainable growth.
Strengthening the Nigerian Capital Market
The Securities and Exchange Commission (SEC) confirmed this in a statement, highlighting that the new law reaffirms SEC’s role as the top regulatory authority in the Nigerian capital market. The Act introduces reforms to align the market with global standards and ensure better oversight.
Emomotimi Agama, SEC’s Director-General, described the approval as a major milestone. He emphasized that the ISA 2025 addresses regulatory gaps, encourages innovation, and strengthens investor protection. By modernizing market rules, the Act aims to attract more local and foreign investments.
Key Changes in the New Act
The ISA 2025 introduces several changes to improve market operations. One major update is the classification of securities exchanges into Composite and Non-Composite Exchanges. Composite Exchanges allow all types of securities, while Non-Composite Exchanges focus on specific securities or products.
The Act also strengthens financial market infrastructure by regulating entities like Central Counter Parties, Clearing Houses, and Trade Depositories. Additionally, it officially recognizes virtual assets and investment contracts as securities, bringing Virtual Asset Service Providers (VASPs) under SEC’s oversight.
To improve transparency, the Act mandates the use of Legal Entity Identifiers (LEIs) for capital market transactions. It also introduces stricter measures against Ponzi schemes, imposing heavy penalties on offenders.
Supporting Economic Growth
SEC acknowledged the role of the National Assembly and the Ministry of Finance in shaping this law. Lawmakers engaged with stakeholders to ensure the legislation aligns with Nigeria’s broader economic goals. The new Act also makes it easier for sub-national entities to raise funds from the capital market, encouraging economic development.
Ensuring Market Stability
The ISA 2025 includes measures to manage systemic risks in the capital market. It also improves the regulation of Commodities Exchanges and Warehouse Receipts, which will help boost Nigeria’s commodities sector.
The Tribunal overseeing capital market disputes has also been restructured to enhance its efficiency. Changes in the Tribunal’s composition and jurisdiction will ensure better resolution of securities-related cases.
