The Nigerian Capital Market entered a new era set for growth with a landmark move with President Bola Ahmed Tinubu signing the Investment and Securities Act (ISA) 2025 into law.

Here Are The Highlights Of ISA 2025

1. Digital Assets Are Now Recognized

For the first time, cryptocurrencies and virtual tokens are officially classified as Securities. This imposes obligations on digital asset operators to register with the Securities and Exchange Commission (SEC) to continue doing business legally in Nigeria.

Impact: Legitimizes digital finance and brings regulatory clarity to a fast-growing sector.

2. New Exchange Classifications

The Act introduces two types of Exchanges:

• Composite Exchanges – permitted to trade all securities.
• Non-Composite Exchanges – limited to specific assets.

Impact: Simplifies regulation while allowing flexibility in market operations.

3. Crackdown on Ponzi Schemes

Unregistered investment schemes are now banned under the law. Promoters of such schemes will face heavier penalties.

Impact: Strengthens investor protection and curbs financial fraud.

4. Boost for Commodities Markets

A clearer legal framework now supports regulated Commodity Exchanges and warehouse receipt systems. This is great news for sectors like Agriculture and Mining.

Impact: Encourages sectoral development and improves trade transparency.

5. States Can Now Raise Capital

Sub-national Governments (i.e., State and Local Governments) are now permitted to raise funds through the capital market for infrastructure and development initiatives.

Impact: Opens up new funding channels for public projects.

6. Enhanced Market Stability

The Act includes special protections for key financial infrastructure such as Clearinghouses and gives the SEC more authority to monitor and manage systemic risk.

Impact: Improves resilience and investor confidence in the financial system.

7. Easier Access to Capital for SMEs

Smaller businesses, startups, and other entities can now issue securities to the public under more flexible rules.

Impact: Encourages innovation and enhances financial inclusion for emerging enterprises.

The Game Changer

The Investment and Securities Act 2025 is more than just legal reform—it is a roadmap for:

• Modernizing Nigeria’s Capital Markets
• Protecting investors and financial infrastructure
• Expanding access to funding
• Reducing financial fraud
• Aligning Nigeria with global standards (IOSCO Principles, 2024)

By addressing structural inefficiencies, promoting innovation, and expanding market access, the new Act lays the foundation for a stronger, more transparent investment landscape.