President Bola Ahmed Tinubu has signed the Investments and Securities Bill 2025 into law, replacing the Investments and Securities Act of 2007. This new legislation aims to strengthen Nigeria’s capital market by enhancing regulatory oversight, improving investor protection, and aligning market operations with global best practices.
The enactment of the Investments and Securities Act (ISA) 2025 reinforces the Securities and Exchange Commission’s (SEC) authority as the apex regulator of Nigeria’s capital market. It introduces critical reforms to ensure market transparency, protect investors, and reduce systemic risks while promoting capital formation and sustainable growth.
SEC Director General, Dr. Emomoitimi Agama, highlighted key provisions of the Act, emphasizing its role in modernizing market regulations. “The Act enhances SEC’s regulatory powers to match global securities regulators, ensuring compliance with international standards such as the IOSCO Enhanced Multilateral Memorandum of Understanding (EMMoU). This strengthens investor confidence and enhances Nigeria’s market attractiveness,” Agama stated.
One of the Act’s major reforms is the classification of securities exchanges into Composite and Non-Composite categories. Composite Exchanges allow all types of securities to be listed and traded, while Non-Composite Exchanges specialize in specific securities. Additionally, the Act formally recognizes virtual and digital assets, bringing Virtual Asset Service Providers (VASPs), Digital Asset Operators (DAOPs), and Digital Asset Exchanges under SEC’s regulatory framework.
Other significant provisions include enhanced insolvency protections for Financial Market Infrastructures, measures for systemic risk management, and an expanded category of issuers to encourage innovative financial products. The Act also mandates the use of Legal Entity Identifiers (LEIs) for greater transaction transparency and explicitly criminalizes Ponzi schemes and illegal investment operations, prescribing severe penalties for violators.
In strengthening the Investments and Securities Tribunal, the Act revises its composition and jurisdiction to enhance its ability to adjudicate capital market disputes effectively. The legislation also facilitates sub-national fundraising through the capital market, addressing previous restrictions that limited states and agencies’ access to capital.
Dr. Agama praised the President’s approval as a transformative step toward making Nigeria’s capital market more resilient and competitive. “The ISA 2025 reflects our commitment to fostering innovation, protecting investors, and positioning Nigeria as a preferred investment destination. We commend all stakeholders, including the National Assembly, the Ministry of Finance, and industry participants, for their role in achieving this milestone,” he said.
With the new Act in place, the SEC is poised to implement policies that will drive investor confidence, market efficiency, and sustainable economic growth, ensuring Nigeria’s financial ecosystem remains robust and globally competitive.
