New Investments and Securities Act 2025 sets strict compliance rules as Nigeria upgrades its capital market framework….
The Securities and Exchange Commission (SEC) has directed all Capital Market Operators (CMOs) to immediately declare their compliance status and ensure that every tradable instrument under their management is fully registered in accordance with the Investments and Securities Act (ISA) 2025 by January 2026.
SEC Director-General, Emomotimi Agama, issued the directive on Wednesday during the Commission’s 2025 Journalists’ Academy in Lagos. The forum, themed “The ISA 2025 and the Future of Nigeria’s Capital Market: Innovation, Protection and Growth,” brought together regulators, analysts and media professionals to examine the transformative impact of the new legislation.
Agama, who was represented by the Commissioner of Operations, Bola Ajomale, said the ISA 2025 establishes a stronger regulatory framework for Nigeria’s capital market and sets clear expectations for operators. He emphasized that anyone offering a tradable instrument is required to register with the SEC and complete all regulatory steps before the January deadline.
“If we get this right, ISA 2025 will become the powerful foundation for the capital market Nigeria needs and deserves deep, efficient, innovative and globally competitive,” he said. “This Act is not just a replacement for the 2007 law; it is a forward-looking instrument designed for a rapidly evolving financial landscape.”
According to him, the Act enhances investor protection, strengthens market transparency and equips the Commission with modern tools to monitor and enforce fair trading practices. He explained that the reform was necessary due to the rapid expansion of digital trading, fintech innovation and new financial products that had outgrown the provisions of the old regulatory framework.
Agama noted that one of the most significant features of the ISA 2025 is the explicit definition of the SEC’s regulatory objectives and powers. For the first time, the Act clearly outlines the Commission’s mandate to act in the public interest, protect investors, ensure market fairness, prevent unlawful practices, mitigate systemic risk and support capital formation.
“This level of clarity enhances the SEC’s authority and improves institutional accountability,” he said. “It also removes ambiguities that previously complicated enforcement actions and strengthens alignment between the Commission’s work and national economic objectives.”
The new Act also expands the SEC’s investigative powers, allowing the regulator to probe not only licensed entities but also third parties when necessary to uncover market abuse or complex financial schemes.
“This closes a major loophole that previously limited investigations into misconduct,” Agama added. “The SEC is no longer constrained by outdated definitions or narrow supervisory boundaries. We now have modern tools to safeguard market integrity.”
He explained that the reform was driven by multiple factors: the rise of fintech and virtual assets, the inability of the previous Act to address Ponzi schemes and systemic vulnerabilities, the need for stronger alignment with IOSCO standards, and the strategic imperative to deepen Nigeria’s capital market to support economic development.
Agama described the ISA 2025 as a collective effort to modernise the nation’s financial architecture and position Nigeria’s capital market for long-term growth.
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