President Bola Tinubu has signed the Investments and Securities Bill (ISB) 2025 into law, marking a significant step in strengthening Nigeria’s capital market. The new law repeals the Investments and Securities Act of 2007 and introduces provisions aimed at enhancing investor protection, promoting transparency, and aligning Nigeria’s financial market with global standards. The Securities and Exchange Commission (SEC), which announced the signing, emphasized that the law would reinforce market integrity and attract both local and foreign investors.
A major highlight of the ISB 2025 is its recognition of digital assets and investment contracts as securities, placing virtual asset service providers under the SEC’s regulatory oversight. This move is expected to create a structured framework for cryptocurrency and other digital financial instruments, reducing the risks of fraud and illicit financial activities. Additionally, the law mandates the use of legal entity identifiers (LEIs) for securities transactions, ensuring better tracking and accountability within the market.
The legislation also strengthens measures against fraudulent investment schemes, particularly Ponzi schemes, by imposing stricter penalties on promoters of such activities. By doing so, the government aims to protect investors from financial losses and improve public confidence in Nigeria’s capital market. The law further provides a regulatory framework for commodities exchanges and warehouse receipts, fostering the development of innovative financial products.
Emomotimi Agama, the Director-General of the SEC, highlighted the significance of the new law in advancing Nigeria’s capital market. He stated that the ISB 2025 empowers the SEC to foster innovation, protect investors more efficiently, and position Nigeria as a competitive investment destination. The law’s enactment demonstrates the government’s commitment to economic growth through a robust and well-regulated financial sector.
With the signing of this bill, Nigeria is set to benefit from an improved investment climate, increased investor confidence, and a more transparent and efficient capital market. The law is expected to encourage greater participation from both domestic and foreign investors, ultimately contributing to the country’s economic development. As Nigeria continues to modernize its financial sector, the ISB 2025 serves as a critical milestone in ensuring sustainable growth and stability.
