President Bola Ahmed Tinubu has signed the Investments and Securities Act (ISA) 2025 into law, a move aimed at strengthening Nigeria’s capital market by enhancing investor protection, promoting transparency, and aligning regulations with global best practices. The new law repeals the Investments and Securities Act No. 29 of 2007 and introduces significant reforms to improve market integrity and financial stability.
The Securities and Exchange Commission (SEC) described the enactment of the ISA 2025 as a transformative step that reaffirms its authority as the apex regulator of Nigeria’s capital market. SEC Director-General, Dr. Emomoitimi Agama, highlighted key aspects of the new law, including expanded regulatory powers to maintain Nigeria’s “Signatory A” status under the International Organization of Securities Commissions (IOSCO). The Act classifies exchanges into composite and non-composite categories, explicitly recognizes digital assets as securities, and places virtual asset service providers under SEC regulation.
Additionally, the Act strengthens measures against Ponzi schemes and other fraudulent investment operations by prescribing stringent penalties for violators. It also mandates the use of Legal Entity Identifiers (LEIs) to improve transparency in financial transactions and introduces insolvency provisions to protect financial market infrastructures. The SEC commended the National Assembly and the Ministry of Finance for their role in developing the new legal framework, which is expected to boost investor confidence and attract both local and foreign investments.
