The Securities and Exchange Commission (SEC) has described the Investments and Securities Act (ISA) 2025 as a groundbreaking law that holds immense potential to stimulate growth in Nigeria’s capital market and broader economy.
In an interview in Abuja, SEC’s Director-General, Emomotimi Agama, highlighted key features of the new law, emphasizing that it would help maintain Nigeria’s standing in the global financial system. He explained that one of the significant aspects of ISA 2025 is its ability to enable the SEC to retain its “signatory A” status with the International Organization of Securities Commissions (IOSCO), which in turn allows other countries to benchmark Nigeria’s capital market and regulatory standards.
Agama pointed out that this recognition would attract foreign investments into Nigeria’s market, expanding its reach and influence internationally.
The SEC DG also noted that the new law expands opportunities for capital raising in the Nigerian capital market and includes provisions for the regulation of online forex trading, an area with increasing involvement from Nigerian youths. Additionally, ISA 2025 introduces regulations for digital assets, which is particularly important given the rapid growth of this sector.
Another key feature of the law is the introduction of the Legal Entity Identifier (LEI) to regulate derivatives transactions, alongside new regulations for the commodities market, which will govern everything from the spot market to derivatives and secondary markets.
Agama highlighted the removal of restrictions for state and local governments in raising capital, an essential move for driving development at regional and municipal levels.
Overall, Agama described the new law as crucial for facilitating growth in Nigeria’s capital market and enabling broader economic development.
