Chairman of the Senate Committee on Capital Market and Institutions, Senator Osita Bonaventure Izunaso
, has emphasised that strong legislative leadership remains critical to building a resilient and globally competitive capital market capable of driving Nigeria’s long-term economic transformation.
In a paper titled “Legislative Leadership and Capital Market Development in Nigeria: Strengthening the Legal Framework for Economic Transformation,” the senator argued that while regulators and market operators play vital operational roles, the success of the capital market ultimately depends on a robust legal and institutional framework established by the National Assembly.
Izunaso noted that the capital market has become an essential tool for mobilising long-term finance, supporting private sector growth, financing infrastructure and creating wealth, adding that Nigeria’s ambition to diversify its economy and attract investment relies heavily on an efficient and transparent securities market.
He identified the enactment of the Investments and Securities Act (ISA) 2025 as a major milestone in Nigeria’s financial sector reforms. According to him, the new law modernises the country’s securities market by strengthening investor protection, expanding the enforcement powers of the Securities and Exchange Commission (SEC), providing legal recognition for digital assets and financial market infrastructures, and aligning Nigeria’s regulatory framework with international best practices.
The senator said the legislation also addresses emerging developments such as financial technology, artificial intelligence, cybersecurity, sustainable finance and cross-border capital flows, while providing a stronger legal basis for regulating virtual asset service providers and innovative investment products.
He stressed that the National Assembly’s responsibilities extend beyond passing laws to include oversight of regulatory agencies, budgetary support, stakeholder engagement and periodic review of legislation to ensure the capital market remains responsive to global financial developments.
Izunaso acknowledged that Nigeria’s capital market has recorded significant progress in recent years through technological innovation, improved market infrastructure, expansion of institutional investment driven by pension funds, and enhanced regulatory oversight.
He, however, pointed to several challenges, including low retail investor participation, inflationary pressures, exchange rate volatility, cybersecurity threats and the need to deepen market products such as corporate bonds, derivatives, exchange-traded funds, commodities exchanges and infrastructure financing instruments.
According to him, continued legislative support for investor education, financial inclusion, consumer protection and digital resilience will be essential to sustaining investor confidence and market integrity.
The senator also highlighted the growing importance of collaboration among institutions such as the SEC, the Central Bank of Nigeria (CBN), the Corporate Affairs Commission (CAC), the Nigerian Exchange Group (NGX Group), and the Investments and Securities Tribunal (IST) in strengthening market governance.
Drawing lessons from countries including the United States, India and South Africa, Izunaso maintained that Nigeria must continue to modernise its legal framework to keep pace with global financial innovation and strengthen its competitiveness.
He concluded that sustained legislative innovation, effective oversight, evidence-based policymaking and institutional strengthening would be crucial to positioning the Nigerian capital market as a catalyst for economic growth, increased investment and long-term national development.
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