The Securities and Exchange Commission (SEC) has described the Investments and Securities Act (ISA) 2025 as a transformative law with the potential to stimulate Nigeria’s capital market and overall economic growth.
Speaking in Abuja, SEC Director-General Dr. Emomotimi Agama highlighted the law’s significance, emphasizing its role in maintaining Nigeria’s “A” signatory status with the International Organization of Securities Commissions (IOSCO). This, he noted, positions the Nigerian capital market for increased foreign investments and global benchmarking.
Dr. Agama outlined key provisions of the ISA 2025, including expanded opportunities for capital raising, regulatory oversight of online forex trading, and the introduction of digital asset regulations. He noted that these reforms are particularly crucial given the large number of Nigerian youths engaged in digital finance.
“The law also introduces the Legal Entity Identifier, which enhances derivatives transactions,” he added. “Additionally, it provides a comprehensive framework for the commodities ecosystem, spanning from the spot market to derivatives and secondary markets.”
A major breakthrough in the legislation is the removal of restrictions on states and local governments in raising capital, allowing them to fund critical infrastructure projects.
Dr. Agama emphasized that the new law strengthens the capital market’s ability to support Nigeria’s economic transformation, aligning with President Bola Tinubu’s goal of achieving a $1 trillion economy.
“The Nigerian capital market is robust and has already facilitated significant capital raising, including N2.4 trillion for bank recapitalization and N250 billion for housing finance through the Ministry of Finance Incorporated,” he noted. “Market capitalization has now exceeded N65 trillion, signaling strong investor confidence.”
The SEC DG commended President Tinubu, the National Assembly, and the finance ministers for their support, reaffirming the Commission’s commitment to driving financial sector growth and ensuring a resilient, inclusive capital market.
