In a groundbreaking move, the Nigerian government has ushered in a new era for the nation’s capital market with the investments and securities Act 2025, opening a new chapter for the country’s financial landscape.
This comes as President Bola Ahmed Tinubu officially signed the Investments and Securities Bill, thus providing for a robust regulatory framework in Nigeria’s capital market.
According to a statement by the Securities and Exchange Commission (SEC), the new Investments and Securities Act 2025 repeals the Investments and Securities Act 2007 and introduces key reforms aimed at boosting investor confidence, strengthening market oversight, and aligning Nigeria’s financial markets with global best practices.
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Commenting on this development, the Director-General of SEC, Dr. Emomotimi Agama, commended the President’s assent as a transformative step for the capital market.
He said,
“The ISA 2025 reflects our commitment to building a dynamic, inclusive, and resilient capital market. By addressing regulatory gaps and introducing forward-looking provisions, the new Act empowers the SEC to foster innovation, protect investors more efficiently, and reposition Nigeria as a competitive destination for local and foreign investments.
“We commend all stakeholders within and outside the capital market community for their unwavering solidarity towards the achievement of this historic milestone and solicit their continued collaboration in respect of the effective implementation of the ISA 2025 for the benefit of our economy”.
It is worth noting that the investments and securities Act 2025, explicitly recognized virtual assets such as crypto and investment contracts, as securities, a move that signals Nigeria’s readiness to embrace the global cryptocurrency revolution. This progressive step has been met with widespread approval from financial experts and market stakeholders, who see it as a catalyst for revitalizing Nigeria’s capital market.
Lauded as a visionary reform, the ISA 2025 introduces measures to align Nigeria with international financial standards, particularly in the fast-evolving crypto space. One standout feature of the legislation is its firm stance against Ponzi schemes and other illicit investment activities, imposing harsh penalties, including significant jail time, on perpetrators.
Implications of The (ISA) 2025, For The Nigerian Crypto Community
The Investments and securities act (ISA) 2025, recently signed into law, carries profound implications for both the Nigerian crypto community and the broader advancement of the country’s capital market.
For years, Nigeria’s crypto community has operated in a gray area, navigating inconsistent policies and occasional crackdowns by the government, such as the Central Bank of Nigeria’s 2021 ban on banks facilitating crypto transactions.
However, the ISA 2025 has changed this narrative by formally classifying cryptocurrencies as securities under the oversight of the Securities and Exchange Commission (SEC). This provides much-needed legal clarity, legitimizing crypto as a recognized asset class and reducing uncertainty for traders, developers, and businesses in the sector.
With crypto now under Nigeria’s SEC regulatory umbrella, investors both individual and institutions, can engage with digital assets with greater assurance. The law mandates protections against fraud and market manipulation, which could attract hesitant participants who previously viewed crypto as too risky or unregulated. This boost in confidence may drive higher adoption and investment in Nigeria, a country already known as one of Africa’s leading crypto markets.
Notably, by integrating crypto into the capital market framework, the ISA 2025 opens the door for innovative financial products, such as tokenized securities, crypto-based investment funds, and blockchain-driven platforms. Nigerian startups and fintechs, many of which have been at the forefront of Africa’s blockchain revolution, now have a legal foundation to build and scale solutions that leverage digital assets.
Looking ahead
By embedding cryptocurrencies into its legal framework, Nigeria is positioning itself as a leader in Africa’s digital economy, fostering an environment ripe for growth, transparency, and investor confidence in the crypto era.