Tinubu Assents to Investments and Securities Act 2025

President Tinubu Bola has given approval to the 2025 Investments and Securities Act (ISA), which revoked Investment Law and Securities No. 29 of 2007.

This is known on Saturday by the Securities and Exchange Commission (SEC) which records that the law is important to strengthen the Nigerian capital market law framework, increase investor protection, and introduce critical reforms to promote market integrity, transparency, and sustainable growth.

Burdened by ISA 2025 reiterates the SEC authority as the regulatory authority of the Nigerian capital market, because this new action also introduces provisions to harmonize the Nigerian market operations with the best international practice.

MAIN HOSTS OF ISA 2025:

This law increases the strength of the SEC regulation in a way that is proportional to the benchmark of global securities regulators. This enhanced strength and function ensures a full compatibility with the IOSCO requirements increased Memorandum Multilateral Understanding (EMMOU), allows SEC to maintain the status of “signing A” and the overall attractiveness of the Nigerian capital market.

Other provisions from ISA 2025 include:

Classification of exchanges and the inclusion of provisions on financial market infrastructure-this law classifies securities exchanges into composite and non-composite exchanges. Composite exchange is a limit in which all securities and products categories can be registered and traded, while non-composite exchanges focus on the type of security or single product. There are also new provisions regarding financial market infrastructure such as the Central Counter, Clearing Houses and Trade Deposits.

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Expansion of Definition and Understanding of Securities – This law explicitly recognizes virtual/digital assets and investment contracts as securities and bring virtual asset service providers (VASP), digital asset operators (DAOP) and expand digital assets under the scope of regulations.

Comprehensive bankruptcy provisions for financial market infrastructure -the law introduces provisions that release transactions facilitated through or involve financial market infrastructure from the application of general bankruptcy laws.

Systemic Risk Management – The law introduces the provisions for monitoring, management and mitigation of systemic risk in the Nigerian capital market.

Expansion of the Publisher Category to the Public-Laws expand the publisher category, as a key step towards the introduction of various products and innovative products and facilitation of “commercial and investment business activities”, subject to the approval of the commission and other control specified in the law.

The legal framework for the exchange of commodities – this law contains a new part governing commodity exchange regulations and warehouse receipts. These provisions are very important to enable the overall development of commodity ecosystems.

The issuance of securities by sub-nationals and conditions that stand out from this law discusses the existing restrictions in connection with the collection of funds from the capital market by sub-nationals to enable greater flexibility in this regard.

Transparency in securities transactions – the law introduces the use of compulsory identification of legal law (LEI) by participants in capital market transactions. This provision is designed to increase transparency in conducting securities transactions.

Enforcement of Illegal Investment Schemes – This law clearly banned the Ponzi scheme and investment scheme that violated other laws, while prescribing strict prison requirements and other sanctions for the promoter of the scheme.

Strengthening Investment and Court of Securities- This law changed several main provisions in the 2007 ISA which were revoked relating to the composition of the court, the Court Constitution, the Qualification and Appointment of the Head of the Registrar and the Court Jurisdiction to improve the ability of the court to optimally release the mandate.

Commenting on this developmwnt, the director-general of the sec, Dr. Religious emomotimi, lauded the president’s Assent as a transformative step for the capital market and stated: “by addressing regulatory gaps and introducing forwarding provisions, the new act empowers the sec to foster innovation, protect investors more efficiently and reposition nigeria as a competitive destination for local and foreign investments. “

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