By Newsshelve Correspondent.
In a significant development for Nigeria’s capital market, President Ahmed Bola Tinubu has signed the Investments and Securities Bill (ISB) 2025 into law.
This landmark legislation repeals the Investments and Securities Act No. 29 of 2007 and enacts the Investments and Securities Act 2025, strengthening the legal framework of the Nigerian capital market and enhancing investor protection.
Speaking on Key highlights of the Act, Director General of the Securities and Exchange Commission (SEC), Dr. Emomoitimi Agama, said it enhances the regulatory powers of the SEC in a manner comparable with benchmark global securities regulators.
According to him, these enhanced powers and functions ensure full conformity with the requirements of IOSCO’s Enhanced Multilateral Memorandum of Understanding (EMMoU), enabling the SEC retain its “Signatory A” status and enhancing the overall attractiveness of the Nigerian capital market.
The ISA 2025 introduces several key provisions to promote market integrity, transparency, and sustainable growth.
These include the classification of exchanges into composite and non-composite exchanges, allowing for greater flexibility and specialization in the market.
The Act also includes provisions on financial market infrastructures such as central counterparties, clearing houses, and trade depositories.
The Act explicitly recognizes virtual/digital assets and investment contracts as securities, bringing virtual asset service providers, digital asset operators, and digital asset exchanges under the regulatory purview of the Securities and Exchange Commission (SEC).
Additionally, the Act introduces provisions that exempt transactions facilitated through financial market infrastructures from general insolvency laws.
The ISA 2025 provides for the monitoring, management, and mitigation of systemic risk in the Nigerian capital market.
The Act also enhances the regulatory powers of the SEC, enabling it to retain its “Signatory A” status and improve transparency through the mandatory use of Legal Entity Identifiers (LEIs) by participants in capital market transactions.
The SEC has expressed its commitment to implementing the new law, stating that it will foster innovation, protect investors, and reposition Nigeria as a competitive destination for investments.
The ISA 2025 is expected to have a significant impact on the Nigerian capital market, attracting local and foreign investments and promoting economic growth.
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