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President Bola Tinubu has signed the investment and securities bill (ISB) 2025 into law to strengthen the legal framework of the Nigerian capital market and enhance investor protection.
The Securities and Exchange Commission (SEC) announced Tinubu assented to the bill in a statement on Saturday.
On February 18, the national assembly transmitted the bill to Tinubu for assent.
SEC said the ISB 2025 repeals the Investments and Securities Act No. 29 of 2007 and enacts the Investments and Securities Act 2025.
According to the statement, signed by Efe Ebelo, head of SEC’s external relations department, the Act introduces transformative provisions to further align Nigeria’s market operations with international best practice.
“This landmark legislation strengthens the legal framework of the Nigerian capital market, enhances investor protection, and introduces critical reforms to promote market integrity, transparency, and sustainable growth,” Ebelo said.
“The enactment of the ISA 2025 reaffirms the authority of the SEC as the apex regulatory authority of the Nigerian Capital Market as well as to regulate the market to ensure capital formation, the protection of investors, and maintenance of fair, efficient and transparent market and reduction of systemic risks.”
Also, Emomotimi Agama, director-general (DG) of the SEC, said the ISA 2025 reflects the commission’s commitment to building a dynamic, inclusive, and resilient capital market.
“By addressing regulatory gaps and introducing forward-looking provisions, the new Act empowers SEC to foster innovation, protect investors more efficiently and reposition Nigeria as a competitive destination for local and foreign investments,” Agama said.
“We commend all stakeholders within and outside the capital market community for their unwavering solidarity towards the achievement of this historic milestone.
“We solicit their continued collaboration in respect of the effective implementation of the ISA 2024 for the benefit of our economy.
“SEC extends its profound appreciation to the National Assembly for its patriotism and dedication in enacting this new legal framework for the Nigerian capital market.
“The meticulous deliberations, extensive stakeholder engagements, and bi-partisan support demonstrated throughout the legislative process highlight the National Assembly’s resolve to foster economic growth and enhance investor confidence.
“We also commend the honourable minister of finance and coordinating minister of the economy of Nigeria as well as the minister of state for finance for their invaluable contributions to the realisation of this groundbreaking project.
“Their strategic guidance, policy expertise, and steadfast support have ensured that the ISA 2024 aligns with Nigeria’s broader economic objectives.
“The SEC would continue to engage with market operators, investors, and all stakeholders to ensure a seamless transition from the repealed ISA 2007 to the new legal regime established under the ISA 2024.”
‘ISA 2025 IDENTIFIES DIGITAL ASSETS AS SECURITIES’
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SEC said the ISA 2025 introduces significant changes to enhance the Nigerian capital market.
The capital market regulator said securities exchanges are classified by the Act into composite and non-composite exchanges, providing clarity on their operations.
Additionally, the commission said the Act recognises digital assets and investment contracts as securities, bringing virtual asset service providers under the SEC’s regulatory requirements.
Other key provisions include the monitoring, management, and mitigation of systemic risk in the Nigerian capital market.
SEC said the Act also expands the categories of issuers, facilitating innovative products and offerings.
The commission added that the ISA 2025 regulates commodities exchanges and warehouse receipts and removes restrictions on sub-national governments raising funds from the capital market.
To improve transparency, the SEC said the Act introduces the mandatory use of legal entity identifiers (LEIs) for securities transactions, adding that it also prohibits ponzi schemes and unlawful investment schemes, imposing stringent penalties on promoters of such schemes.
