SEC Encourages Stakeholders to Embrace Opportunities Under ISA 2025
The Securities and Exchange Commission (SEC) has called upon businesses, investors, and market participants in Nigeria to capitalize on the vast opportunities presented by the newly enacted Investments and Securities Act, 2025 (ISA 2025). This groundbreaking reform aims to modernize Nigeria’s capital market and stimulate sustainable economic growth.
During a stakeholder forum organized by the SEC and the Lagos Chamber of Commerce and Industry (LCCI), SEC Director-General Dr. Emomotimi Agama, represented by Mr. Habib Abubakar, highlighted the transformative potential of ISA 2025 for the Nigerian capital market. The event, themed ‘Unlocking Capital Market Opportunities for Business Growth and Development,’ underscored the strategic importance of this legislative milestone in shaping the future of the country’s financial landscape.
Key Elements of ISA 2025
Dr. Agama outlined three key pillars that underpin the significance of ISA 2025:
- Enhanced Support for SMEs: The new legislation streamlines registration and listing processes, making it easier for small and medium enterprises to access long-term and affordable capital. This move is particularly crucial in a nation where the majority of businesses operate informally, lacking access to formal financing channels.
- Recognition of Digital Assets: ISA 2025 formally acknowledges digital assets as legitimate investment instruments, providing clarity to a sector previously operating in a regulatory gray area. This recognition positions Nigeria at the forefront of fintech-driven financial inclusion, paving the way for innovative funding mechanisms and technological advancements.
- Diversification of Investment Instruments: The Act expands the range of financial products available in the market, including provisions for green bonds, sustainability-linked debt, private equity funds, and Sharia-compliant instruments. By embracing these diverse instruments, Nigeria aims to tap into global sustainable financing trends and cater to a broader investor base.
Fostering Confidence and Attracting Investment
Dr. Agama emphasized that building investor confidence is essential for the sustained growth of the capital market. ISA 2025 introduces robust investor protection measures, transparency requirements, and governance standards to enhance market integrity and bolster investor trust. By enforcing these regulations, the SEC aims to encourage greater participation in the market, especially from retail investors wary of governance lapses.
As Nigeria grapples with economic challenges, ISA 2025 offers a strategic roadmap to diversify funding sources for key sectors such as agriculture, infrastructure, and healthcare. By reducing bottlenecks and promoting private-sector-led development, the Act aims to position the capital market as a catalyst for inclusive economic growth.
Looking Ahead
As the SEC prepares to roll out implementation guidelines and sector-specific rulebooks to operationalize ISA 2025, market observers anticipate tangible outcomes from this landmark legislation. For Nigeria, ISA 2025 represents more than a regulatory overhaul—it symbolizes a pivotal moment to unleash the full potential of the capital market for sustainable economic transformation.
Dr. Agama’s call for stakeholder collaboration underscores the collective effort required to leverage the opportunities presented by ISA 2025. By aligning operations with the new framework and fostering awareness, Nigeria aims to chart a new course towards a dynamic and resilient capital market ecosystem.
