Expansion of Asset Classes in ISA 2025 Set to Boost Nigerian Capital Market, Says CSCS
The Central Securities Clearing System (CSCS) Plc has hailed the recent expansion of recognised asset classes under the Investment and Securities Act (ISA) 2025 as a major milestone for Nigeria’s capital market. Akinwonuola Atitebi, Head of Treasury and Investments at CSCS, spoke on the development during a panel at the annual Capital Market Correspondents Association of Nigeria (CAMCAN) conference, themed “Regulatory Reforms: ISA 2025 and Investment Climate.”
President Bola Tinubu earlier this year signed the ISA 2025 into law, formally recognising digital assets, including cryptocurrencies. The legislation also makes it illegal to operate digital asset exchanges or online foreign exchange platforms without registration with the Securities and Exchange Commission (SEC), aiming to regulate previously unmonitored corners of the market.
Atitebi stressed that the law reflects the evolution of global and local markets over the past decade. “Today’s markets are different from those of a decade ago. This act brings everything together and, importantly for CSCS, includes additional asset classes that were previously unregulated,” he said. He highlighted that digital assets, in particular, present significant opportunities for growth and innovation.
Beyond opening new investment avenues, ISA 2025 incorporates strong compliance measures to prevent market abuses. Atitebi cited the prohibition of cash transactions in capital markets and the requirement for all securities to be dematerialised before secondary market trading as proactive steps to strengthen market integrity. He praised the SEC and the Ministry of Finance for their efforts in crafting robust legislation.
With ISA 2025 now in effect, Nigeria’s capital market is set to embrace digital transformation while providing investors with a broader spectrum of opportunities. This move builds on CSCS’s recent initiative to transition the market to a T+2 settlement cycle, aligning Nigeria with global capital market standards.
source: Leadership