Nigeria’s capital market is set for a major transformation following renewed commitments by regulatory and market leaders to fully implement the Investment and Securities Act (ISA) 2025, a landmark legislation expected to reshape market governance, strengthen investor protection, and attract long-term investment into the economy.

Speaking at the 2025 workshop of the Capital Market Correspondents Association of Nigeria (CAMCAN) in Lagos, the Director-General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, described the ISA 2025 as “a comprehensive reform agenda” designed to modernise the regulatory environment and position Nigeria’s capital market for global competitiveness.

Agama, delivering a keynote address titled “Regulatory Reforms: ISA 2025 and Nigeria’s Investment Climate,” said the new Act replaces the 2007 framework with 18 Parts and 358 Sections that consolidate nearly two decades of regulatory learning and close long-standing gaps.

He said, the reforms address emerging risks in digital trading, fintech, virtual assets, Ponzi schemes, and market infrastructure, areas where the old Act lacked clarity.

“For the first time, the Act explicitly sets out the objectives, functions, and powers of the SEC, covering investor protection, market integrity, systemic-risk reduction and capital formation,” he said. “The ISA 2025 tells the SEC exactly who it is, what it must do, and how it must do it. This strengthens investor confidence and reinforces the seriousness of regulatory governance in Nigeria.”

A major shift in the Act is the transition from supervising only Capital Market Operators to overseeing a wide class of “regulated entities.” These include digital-asset exchanges, warehouse-receipt operators, crowdfunding platforms, derivatives and commodities exchanges, custodians, and other market intermediaries.

Agama noted that this expansion aligns with global realities and ensures that all significant actors in the modern financial ecosystem are properly supervised. He added that new frameworks for Financial Market Infrastructures (FMIs), insolvency, and systemic-risk management now empower the SEC to identify vulnerabilities, collaborate with other regulators, and take pre-emptive measures during periods of financial stress.

Investor protection has also been strengthened. The Investor Protection Fund will now cover losses arising from the revocation of a dealing member’s registration, while administrative penalties offer a faster alternative to prosecution.

Significant reforms in commodities trading and warehouse receipts, he said, would transform agriculture into a bankable asset class, deepen access to finance and enhance price discovery.

On digital assets, the SEC DG stressed that ISA 2025 provides regulatory clarity by recognising digital and virtual assets as securities where applicable, enabling safer innovation in the fintech ecosystem.

Earlier, the chairman of the Nigerian Exchange Group (NGX Group), Alhaji (Dr.) Umaru Kwairanga, commended the reforms and emphasised that the Act places Nigeria on a path toward a more modern, transparent, and competitive market.

He said the Exchange was already aligning with the Act’s focus on digital inclusion and operational efficiency through NGX Invest, a digital platform designed to simplify public offers and rights issues.

Kwairanga urged financial journalists to maintain professionalism and accuracy, noting that media reporting plays a vital role in investor confidence and market transparency.

In his presentation, the Group Managing Director of GTI Group, Alhaji Abubakar Lawal, described ISA 2025 as a “bold statement of intent,” adding that it would be instrumental in achieving Nigeria’s ambition of becoming a $1 trillion economy by 2030.

He highlighted the recognition of digital and virtual assets as a transformative step that legitimises youth participation in wealth creation. The updated definition of securities to include crowdfunding, PPPs, and infrastructure contracts, he said, will unlock new channels for infrastructure financing.

Lawal also praised the Act’s expansion of eligible issuers, new frameworks for specialised exchanges, expansion of sukuk issuances, and strengthened SEC powers, all of which he described as essential for mobilising capital, deepening innovation, and democratising access to finance.

As the workshop concluded, industry stakeholders agreed that the ISA 2025 is one of the most consequential regulatory reforms in Nigeria’s recent history, one expected to protect investors, empower operators, integrate digital assets, transform the commodities market, and strengthen systemic stability.

Agama summed up the sentiment: “The ISA 2025 is not merely a legislative update. It is a blueprint for building a deeper, stronger, more innovative, and more inclusive capital market. It will become the cornerstone of the market Nigeria needs and deserves.”

 

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