In a move poised to redefine Nigeria’s capital market, President Bola Ahmed Tinubu has signed the Investment and Securities Act, 2025 into law. This legislation, which repeals and replaces the Investment and Securities Act of 2007, introduces comprehensive reforms aimed at bolstering investor confidence, enhancing regulatory oversight, and aligning Nigeria’s financial markets with international standards.

The new Act reaffirms the Securities and Exchange Commission [SEC] as its enforcement body and the apex regulatory authority of the Nigerian capital market. It also enhances regulatory powers of the SEC in an advanced manner comparable with international best practices.

Key highlights of the Investment and Securities Act, 2025 is summarised as follows.

• The Act recognises and classifies virtual assets [including cryptocurrencies] as security, bringing Virtual Asset Service Providers [VASPs], Digital Asset Operators [DAOPs], and Digital Asset Exchanges under the regulatory purview of the SEC to ensure compliance with investor protection standards.
• The legislation expands the SEC’s authority to oversee and regulate various facets of the capital market, including derivatives, systemic risk management, and financial market infrastructures. This enhancement aims to maintain market integrity and protect investors from fraudulent activities.
• The Act introduces stricter penalties for operators of Ponzi schemes and other fraudulent investment programs, prescribing significant fines and prison terms to deter such illicit activities.
• The Act establishes a legal framework for commodity exchanges and warehouse receipts, facilitating structured financing and reducing market risks in sectors such as agriculture and mining.
• The legislation empowers state governments and agencies with greater flexibility to raise funds through the capital market, providing new avenues for infrastructure development and economic growth at the state level. 
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The 2025 Act is believed to promote market integrity and transparency, which enhances investor protection and confidence, paving the way for sustainable economic development. According to the Director-General of the SEC, Mr. Emomotimi Agama, the passage of the Investment and Securities Act, 2025 reflects SEC’s commitment to building a dynamic, inclusive and resilient capital market. 

Without a doubt, the enactment of the legislation goes to show the collaborative efforts of the National Assembly, the Ministry of Finance, and other stakeholders dedicated to enhancing Nigeria’s economic framework.