Yemisi Izuora
The Securities and Exchange Commission (SEC) has said that the Investment and Securities Act (ISA) 2025, offers a comprehensive framework for Exchanges, Financial Market Infrastructures (FMIs), and Self-Regulatory
Organisations, and has significantly stabilized the investment environment by ensuring that all significant actors are properly supervised, reducing risk and
increasing transparency.
Oriental News Nigeria, reports that the Act, is a landmark Nigerian law replacing the 2007 Act, modernizing its capital market by regulating digital assets, strengthening investor protection expanding SEC enforcement powers (including data access), creating new exchange categories (Composite/Non-Composite), and aligning with global standards to boost investment and innovation in Nigeria’s financial sector.
Speaking on the significance of the law, at the Capital Market Correspondents Association of Nigeria (CAMCAN) 2025 workshop in Lagos on Saturday December 6, 2025, the Director General (DG) of SEC, Emomotimi Agama, noted that ISA 2025 is the product of almost a decade of work, and not only a replacement for the 2007 Act but represents a comprehensive reform agenda designed to modernise the regulatory environment, strengthen governance, attract investment, and reposition Nigeria’s capital market to meet the demands of a dynamic global economy.
He said the theme of the workshop, “Regulatory Reforms, ISA 2025, and Nigeria’s Investment Climate.” significantly suggests how regulatory reforms play a defining role in shaping the nation’s investment climate, and ISA 2025
is central to that transformation.
Agama, points that the new Act consolidates nearly two decades of
experience, closes long-standing regulatory gaps, aligns our
framework with global standards, and provides a stronger legal
foundation for innovation, market stability, and investor protection, all
of which are essential for enhancing investor confidence and improving
Nigeria’s investment competitiveness.
Stressing the major innovations of the Act and while also reflecting on how these reforms will shape Nigeria’s investment climate,deepen trust in the regulatory system, and support sustainable economic growth, he noted that the Act represents a national commitment to improving our capital-market environment.
The DG, recalled that a lot of work went into the legislation beginning with the Market-Wide Review Committee in 2016, through multiple National Assembly sessions, and culminating in its enactment in March 2025.
According to him, Several forces made this reform necessary and these include the rise of digital trading, fintech platforms, and virtual assets, inadequacies of the previous Act in addressing Ponzi schemes, systemic risks, and new financing structures, need to align with IOSCO standards; and the imperative to strengthen Nigeria’s investment climate by building a deeper, more resilient capital market.
The Act now spans 18 Parts and 358 Sections, demonstrating the
breadth and depth of the reforms undertaken to improve transparency,
investor protection, market conduct, and regulatory effectiveness.
One of the most transformative aspects of the ISA 2025, he said is the clarity it
brings to the mandate of the Securities and Exchange Commission.
“For the first time, the Act explicitly sets out the regulatory objectives,
functions, and powers of the Commission including acting in the public
interest, protecting investors, maintaining fair and transparent markets,
preventing unlawful practices, reducing systemic risks, and supporting
capital formation.
“This clarity strengthens regulatory authority, enhances accountability,
and improves predictability which are key elements that investors look
for in assessing a market’s attractiveness.
“In simple terms, 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 sends
a clear message about the seriousness of regulatory governance in
Nigeria.” said Agama.
Furthermore, he said the ISA 2025 also introduces important improvements to governance within the wider regulatory ecosystem.
“For example, the Act formally includes PENCOM on the SEC Board,
recognising the central role of pension assets in the capital market and
enhancing the coherence of oversight across key sectors.
“The Act expands investigative capacity beyond regulated entities to
include unrelated third parties where necessary. This closes a major
loophole that previously undermined enforcement and ensures that the
regulator can tackle market abuse more effectively, a crucial factor in
building trust and strengthening Nigeria’s investment climate.
“These reforms demonstrate a shift toward a proactive, well-
empowered regulator, something both domestic and foreign investors
consistently call for.” the DG explained.
Also, a major conceptual shift introduced by ISA 2025 is the transition from
regulating only “Capital Market Operators” to supervising a wider
class of “regulated entities.” and they include digital asset and virtual asset exchanges, warehouse operators and warehouse receipt systems, crowdfunding intermediaries, credit enhancement service providers, derivatives and commodities platforms, market infrastructure operators, custodians and other emerging intermediaries
This shift aligns regulation with the realities of today’s financial markets, he pointed out.
By improving governance, addressing systemic risks, and aligning with
international practices, this framework strengthens the credibility of
Nigeria’s markets, an essential ingredient for attracting long-term
investment, he said.