Speaking during a discussion with President Tinubu in Brazil, the SEC DG described the ISA Act 2025 as one of Africa’s most comprehensive legal frameworks for capital markets, which will ensure equitable wealth distribution through strong investor protection and regulatory clarity.

President Tinubu praised the growth of Nigeria’s capital market over the past two years of his administration, highlighting the rise in market capitalisation and heightened trading activity that have opened up greater investment opportunities for both local and foreign investors.

President Tinubu lauded the NGX Board and SEC leadership for their commitment, affirming his administration’s unwavering resolve to elevate Nigeria’s financial ecosystem.

“Nigeria’s markets must be a trusted engine of enterprise and prosperity. My government will continue to pursue reforms that unlock capital, protect investors, and drive innovation, so that our economy works for every Nigerian,” he stated.

Alhaji Umaru Kwairanga, NGX group chairman, expressed gratitude for the President’s bold reforms. He urged the fast-tracking of the listing of major state-owned enterprises, such as NNPC Limited, and the introduction of tax incentives to sustain the capital market growth.

Temi Popoola, Group CEO of NGX Group, emphasised the importance of positioning Nigeria’s Exchange as a global investment hub through stronger partnerships, modernised market infrastructure, and deeper product innovation.

He also stressed the need to expand retail investor participation through digital channels in order to promote inclusive and sustainable market growth.

President Ahmed Bola Tinubu assented to the Investments and Securities Bill (ISB) 2025, which effectively repeals the Investments and Securities Act No. 29 of 2007 and enacts the Investments and Securities Act (ISA) 2025.

Speaking on the key highlights of the Act, Agama said: “The Act enhances the regulatory powers of the SEC in a manner comparable with benchmark global securities regulators.

“These enhanced powers and functions ensure full conformity with the requirements of IOSCO’s Enhanced Multilateral Memorandum of Understanding (EMMoU), enabling the SEC retain its ‘Signatory A’ status and enhancing the overall attractiveness of the Nigerian capital market.”

He cited other notable provisions of the ISA 2025, such as the Classification of Exchanges and inclusion of provisions on Financial Market Infrastructure, adding that the Act classifies Securities Exchanges into Composite and Non-composite Exchanges.

He explained that a Composite Exchange is one in which all categories of securities and products can be listed and traded, while a Non-composite Exchange focuses on a singular type of security or product.

Agama noted that there are also new provisions on Financial Market Infrastructure such as Central Counterparties’, Clearing Houses and Trade Depositories.

The Investments and Securities Bill 2025 also expanded the definition and understanding of Securities, and explicitly recognises virtual/digital assets and investment contracts as securities and brings Virtual Asset Service Providers (VASPs), Digital Asset Operators (DAOPs) and Digital Asset Exchanges under the SEC’s regulatory purview.

According to Agama, Investments and Securities Bill 2025 equally has “Comprehensive Insolvency Provisions for Financial Market Infrastructure,” which introduces provisions that exempt transactions facilitated through or otherwise involving financial market infrastructure from the application of general insolvency laws.

There is also Management of Systemic Risk which introduces provisions for the monitoring, management and mitigation of systemic risk in the Nigerian capital market.

Also incorporated in the Act, he said, is the “Expansion of the Category of Issuers to the Public.”

According to him, the Act expands the categories of issuers, as a key step towards the introduction of a wide range of innovative products and offerings as well as the facilitation of “commercial and investment business activities”, subject to the approval of the Commission and other controls stipulated in the Act.

The SEC DG disclosed that the Act contains a new part which provides for the regulation of Commodities Exchanges and Warehouse Receipts, adding that these provisions are essential to allow for the development of the entire gamut of the commodities ecosystem.

On the issuance of securities by sub-nationals and their agencies, salient provisions of the Act addressed existing restrictions in respect of raising of funds from the capital market by states to allow for greater flexibility in this regard.

Agama noted that the Act introduced the mandatory use of Legal Entity Identifiers (LEIs) by participants in capital market transactions.

This stipulation is designed to improve transparency in the conduct of securities transactions and expressly prohibits Ponzi schemes and other unlawful investment schemes, while prescribing stringent jail terms and other sanctions for the promoters of such schemes.

In a bid to strengthen the Investments and Securities Tribunal, the Act amended some key provisions in the repealed ISA 2007 pertaining to the composition of the Tribunal, constitution of the Tribunal, qualification and appointment of the Chief Registrar as well as the jurisdiction of the Tribunal to enhance the ability of the Tribunal to optimally discharge its mandate.

Agama praised Tinubu for his assent as a transformative step for the capital market, saying that the ISA 2025 reflects a 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.”

Agama lauded the roles of the National Assembly and the Minister of Finance and Coordinating Minister of the Economy of Nigeria, as well as the Minister of State for Finance for their invaluable contributions to the realisation of this groundbreaking project.

As the blockchain ecosystem rapidly evolves, new operators are entering the space daily.

With this growth comes the urgent need for Blockchain compliance expertise to safeguard the industry from misuse and promote responsible innovation.

During the training, they delved deep into critical areas, including:

• Cryptocurrency Crime Current Trends
• Common Crypto Crimes
• Cryptocurrency Fundamentals
• Tracing Cryptocurrencies: BTC vs ETH
• Exploring Investigative Skills

Why Compliance Matters Now More Than Ever
While regulatory bodies will soon intensify enforcement, they cannot secure the space alone. Compliance practitioners play a pivotal role in bridging the gap between operators and regulators, ensuring ethical practices and preventing financial crimes in the blockchain space.

Cyberchain’s Modular Compliance Training – The First of Its Kind!

To empower a new wave of compliance professionals, Cyberchain has developed a modular compliance training program designed for all experience levels.

This unique hybrid model consists of three progressive levels – Level 1, Level 2, and Level 3 – making it the first of its kind in Nigeria!

Participants can now obtain certification, gain practical skills, and contribute to sanitizing the blockchain ecosystem.

Collaborative Synergy

While Cyberchain has pioneered a modular approach, another organisation making strides in the compliance space is A&D Forensics, led by Adedeji Owonibi, together, the duo are poised to reshaping the Blockchain compliance climate and restoring decency to the once misconstrued industry.

Fostering Innovation

Kashifu Inuwa Abdulahi, the director general, National Information Technology Development Agency (NITDA), is fostering blockchain innovation in Nigeria by supporting infrastructure, indigenous use cases, and blockchain innovation hubs.

The Agency is giving a positive nod to support startups and enterprises in aligning with compliance solutions while promoting collaborations between academia, tech hubs, and regulators.

NITDA also midwives the improvement of the National Blockchain Policy framework, positioning Nigeria as a leader in blockchain compliance.

Beyond ARIP and RI Approvala

While the Securities and Exchange Commission (SEC) currently issues licenses in principle like the Accelerated Regulatory Incubation Program (ARIP) and Regulatory Incubation (RI), operators must go beyond just meeting basic regulatory requirements.

Ensuring that all staff members are well-versed in compliance practices is crucial for maintaining industry integrity.

Dr. Emomotimi Agama, the director genera, Securities and Exchange Commission (SEC) has also displayed readiness for a regulatory approach in the ecosystem by granting approvals in principle to a few Blockchain firms in the country.

The Blockchain Compliance Policy and Regulation Practitioner Certification offered by Cyberchain is the perfect fit for those seeking to stay ahead in this dynamic industry.

Taking Action!

“Be part of the transformation. Equip yourself with the right knowledge, get certified, and contribute to a safer, more transparent blockchain space. Together, we can shape the future of compliant blockchain operations,” Ozinegbe appealed to ecosystem players.

This is coming as Nigeria faces a significant infrastructure deficit, estimated at $3 trillion by the World Bank.

Speaking on a Sub-Theme: Nigeria: Funding Economic Transformation Through The Nigerian Capital Market at the WorldStage Economic Summit (WES) 2014 on Wednesday, September 25, 2024 in Lagos, Agama said bridging the infrastructure  gap will require a coordinated effort between the public and private sectors.

“Our goal is to establish Nigeria’s capital market as the premier destination for infrastructure financing in Africa,” he said.

Represented at the WES 2024 with the Theme: Nigeria: Setting A Stage For Business And Economic Recovery by Mr. Tunde Kamali, Director, Office of of the Director General, Agama said  financing of critical infrastructure was a top priority for Nigeria’s economic recovery as the capital market offers an ideal mechanism for funding large-scale projects, as demonstrated by successful infrastructure bonds and public-private partnerships (PPPs).

“Through the activities of foreign investors, the market is increasingly becoming more efficient and the foreign capital inflows have been used to augment the country’s external reserve with attendant benefits on the exchange rate, all these are geared towards the development of the Nigerian economy,” he said.

At the WES 2024 which also attracted top executives and academicians including Dr. Aminu Maida,  Executive Vice Chairman, Nigerian Communications Commission (NCC); Khalil Suleiman Halilu, Executive Vice Chairman/Chief Executive, National Agency for Science and Engineering Infrastructure (NASENI); Prof Diran Akinleye, Head of Department of Economics, University of Lagos (UNILAG); Prof Yaqub Jameelah Omolara, Head of Department of Economics, Lagos State University (LASU), the SEC boss noted that government patronage of the capital market can significantly benefit both the market and the broader economy.

“By issuing bonds or long-term securities, the government enhances market depth and liquidity, attracting institutional investors seeking stable returns,” Agama said.

“This establishes a benchmark for pricing private-sector debt, boosting investor confidence and making the capital market more predictable.

“Increased government involvement signals stability, encouraging foreign direct and portfolio investment while promoting innovation and improved regulatory frameworks. Over time, government participation can lower borrowing costs for both the public and private sectors, fostering economic growth by channelling funds into key infrastructure and development projects. This stimulates the broader economy, creating jobs and enhancing productivity, which in turn benefits the capital market.

“Additionally, government engagement in the capital market can encourage public-private partnerships, offering investment opportunities while mitigating risk. It also provides investors with avenues to diversify their portfolios, reducing risk and fostering more stable returns. Finally, by offering secure investment instruments, government participation deepens domestic savings, allowing citizens to earn returns on their savings while contributing to national development.

“The Nigerian capital market continues to serve as an important pillar for the stability of the financial system, acting as a crucial conduit for the flow of capital and the efficient allocation of resources. By enabling businesses to raise funds and offering investors diversified opportunities, the capital market supports economic growth and strengthens corporate governance.

“It is important to recognize the indispensable role that our capital market plays in fostering sustainable development. A well-functioning capital market is the bedrock for long-term capital formation, enabling critical investments in infrastructure, energy, agriculture, and technology—sectors essential to Nigeria’s economic transformation.

“The Nigerian capital market is more than just a platform for raising funds; it is a reflection of our nation’s economic health, a vehicle for wealth creation, and a barometer of investor confidence. It is through this market that we can channel investments into projects that will stimulate growth and development.

“From traditional equity markets and bonds to innovative instruments like green bonds and sukuk, the capital market offers diverse options for funding the sectors that will drive Nigeria’s future prosperity.

“The capital market has a critical role to play in economic growth and development of a country and the Nigerian capital market has not been left behind in performing this role.

“The Nigerian capital market has funded critical public and private project from both local and international issuers and investors.

“Specifically, Governments at various levels in the country have at different times resorted to issuing bonds in the capital market to fund key development and infrastructural projects.

“Equally, the equities segment of the market has provided funding for companies to expand operations and for the government to privatize and divest ownership of its enterprises.

“In addition, both domestic, institutional, and retail investors have participated in the capital market to earn income and generate employment.”