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The Securities and Exchange Commission (SEC) has described the upcoming Investments and Securities Act (ISA) 2025 as a transformative legislative framework poised to stimulate economic growth and catalyze innovation in Nigeria’s capital market.
In a recent statement, Dr. Emomotimi Agama, Director General of the SEC, highlighted key regulatory advancements embedded within ISA 2025 during an interview in Abuja. He emphasized that the new law marks a major leap forward in aligning Nigeria’s regulatory landscape with international standards.
“This legislation is revolutionary across multiple dimensions. It empowers the SEC to maintain its signatory A status with the International Organization of Securities Commissions (IOSCO), a crucial benchmark that enhances Nigeria’s credibility in the global financial ecosystem,” Agama stated.
By reinforcing Nigeria’s compliance with international regulatory frameworks, ISA 2025 is expected to attract cross-border investments and broaden participation in the Nigerian capital market. This alignment supports enhanced regulatory compliance, risk assessment, and fosters investor confidence through transparency and consistency.
A notable inclusion in the Act is the regulation of online foreign exchange (forex) trading, a rapidly expanding segment largely driven by Nigerian youth. ISA 2025 also introduces a comprehensive regulatory framework for digital assets, laying the foundation for innovation in compliance software, anti-money laundering (AML) efforts, and Know Your Customer (KYC) protocols.
“This is a significant development for financial inclusion and digital transformation,” Agama explained. “Establishing clear legal structures around digital finance ensures stronger governance, better risk mitigation, and a safer financial environment.”
The Act further integrates the Legal Entity Identifier (LEI) into Nigerian law—an important compliance tool for tracking derivative transactions and ensuring regulatory reporting accuracy.
ISA 2025 also places a spotlight on the commodities market, introducing structured governance from spot and derivative trading to the secondary market. Importantly, it lifts previous restrictions that limited states and local governments from accessing capital markets, thereby enabling broader infrastructure development and economic participation across regions.
“This is a strategic step towards financial decentralization and economic empowerment at the grassroots level,” Agama concluded.
With a strong focus on compliance automation, regulatory monitoring, and capital market modernization, ISA 2025 positions Nigeria as a progressive leader in the global RegTech space.
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