Abuja, Nigeria – March 29, 2025
President Bola Ahmed Tinubu has officially signed the Investments and Securities Act (ISA) 2025 into law, repealing the previous legislation enacted in 2007. The new law is designed to strengthen Nigeria’s capital market, enhance investor protection, and introduce key regulatory reforms to boost market integrity and transparency.
The Act grants enhanced powers to the Securities and Exchange Commission (SEC), aligning its functions with global standards set by the International Organization of Securities Commissions (IOSCO). This move aims to maintain Nigeria’s “Signatory A” status, further improving investor confidence in the country’s financial ecosystem.
One of the significant innovations in the ISA 2025 is the recognition of digital assets as securities, bringing virtual asset service providers (VASPs) under regulatory oversight. This ensures stronger investor protection while fostering growth in Nigeria’s emerging digital economy.
Additionally, the Act provides a legal framework for commodity exchanges and warehouse receipts, offering structured financing options for industries such as agriculture and mining. It also facilitates sub-national governments’ ability to raise funds through the capital market, reducing reliance on federal allocations and traditional bank loans.
To combat financial fraud, the ISA 2025 includes stricter measures against illegal investment schemes, imposing severe penalties on promoters of Ponzi schemes and other fraudulent financial operations.
Market experts and industry stakeholders have welcomed the new legislation, anticipating that it will attract more local and foreign investors, create a more resilient financial market, and drive sustainable economic development.
The signing of the ISA 2025 marks a critical step in modernizing Nigeria’s investment landscape, ensuring transparency, efficiency, and investor confidence in the country’s capital markets.
