Tinubu signs Investment and Securities Act 2025 into law

The new legislation, which repeals the former Investments and Securities Act No. 29 of 2007, is aimed at strengthening the legal and regulatory framework for investments and capital market activities in the country.

The Securities and Exchange Commission (SEC), in a statement released on Friday, described the presidential assent as a “transformative step” toward enhancing investor protection, improving market transparency, and fostering sustainable growth.

The enactment of the ISA 2025, according to the Commission, reaffirms its authority as the apex regulator of Nigeria’s capital markets and introduces significant reforms designed to align local operations with international best practices.

One of the major achievements of the ISA 2025 is the expansion of SEC’s regulatory powers to meet the standards of global bodies such as the International Organization of Securities Commissions (IOSCO).

The SEC stated that the enhanced regulatory powers would allow it to maintain its “Signatory A” status under IOSCO’s Enhanced Multilateral Memorandum of Understanding (EMMoU), a critical benchmark for credibility in global financial markets.

The Act also introduces structural reforms and innovations across various dimensions of Nigeria’s capital market, with implications for exchanges, digital asset operators, commodities trading, and systemic risk management.

One of the pivotal reforms introduced by the ISA 2025 is the classification of exchanges into Composite and Non-composite categories.

The law also brings much-needed regulatory clarity to the digital asset space. For the first time, virtual assets and investment contracts are formally recognized as securities.

To support commodity-based economic activities, the Act introduces a legal framework for commodity exchanges and warehouse receipts.

The ISA 2025 also grants greater flexibility to sub-national governments and their agencies to raise funds from the capital market.

In response to the proliferation of financial scams and Ponzi schemes in Nigeria, the Act introduces stronger enforcement mechanisms.

The Act also includes provisions designed to protect market stability in times of financial distress.

To promote innovation and broaden participation, the ISA 2025 expands the range of entities allowed to issue securities to the public.

Transparency is another central theme of the Act. The law mandates the use of Legal Entity Identifiers (LEIs) for all market participants involved in securities transactions.

Lastly, the Act strengthens the operations and independence of the Investments and Securities Tribunal.

Lastly, the Act strengthens the operations and independence of the Investments and Securities Tribunal.

Speaking on the development, SEC Director-General, Dr. Emomotimi Agama, described the President’s assent as a significant boost for investor confidence and capital market development.

He commended the National Assembly for its patriotism and bipartisan support throughout the legislative process, adding that extensive stakeholder engagement helped shape the provisions of the law.

Their strategic policy guidance, according to the Commission, ensured that the new law is in harmony with the broader economic vision of the Tinubu administration.

The ISA 2025 is expected to spur renewed interest in Nigeria’s capital markets from both local and international investors.