The newly enacted Investments and Securities Act (ISA) 2025 has been hailed as a landmark reform that resets Nigeria’s capital market framework for modern times. Replacing the outdated ISA 2007, this law introduces sweeping changes aimed at protecting investors, boosting transparency, and aligning Nigeria’s regulatory environment with global standards. From expanding the powers of the Securities and Exchange Commission (SEC) to strengthening legal protections and dispute resolution mechanisms, stakeholders agree: this Act is a game-changer. Its promise to attract both local and international capital could mean significant economic growth ahead.
At the heart of the reforms is investor protection. The upgraded Investor Protection Fund (IPF) now covers more scenarios, including revocation of broker licenses, offering investors better security. The restructured Investments and Securities Tribunal is set to deliver quicker justice, enhancing market trust. Meanwhile, the Act breaks new ground by officially recognising digital assets like cryptocurrencies and blockchain-based contracts as securities. This puts Nigeria ahead of the curve in fintech regulation, bringing operators like exchanges and service providers under SEC oversight for the first time.
ISA 2025 also fills long-standing gaps by creating a legal framework for commodities trading and warehouse receipt systems. This could be a major boost for agriculture and rural finance, offering farmers access to capital and improving market structure. According to experts, this legal clarity is critical for developing a functional and attractive commodities ecosystem. The law further classifies securities exchanges into Composite and Non-Composite types, allowing for specialised market operations. This, along with new rules like mandatory Legal Entity Identifiers (LEIs), enhances surveillance and reduces fraud.
Importantly, the Act enables subnational governments to issue securities directly, giving them new tools to finance infrastructure without relying solely on federal allocations. While implementation will be key, especially in the fast-evolving digital asset space, SEC leadership says they’re ready. With dedicated rollout teams in place and a vision to democratise wealth, the ISA 2025 sets a new tone for how Nigeria’s capital market can support inclusive, long-term development.
Source: the sun