Nigeria’s capital market is entering a new regulatory phase as the national securities regulator has directed all operators to declare their compliance status and ensure that every tradable instrument under their management is properly registered in line with the Investments and Securities Act 2025. The directive was issued at a sector forum in Lagos, where stakeholders gathered to examine how the new law will shape the future of the country’s capital market.
The Act, which replaces the 2007 framework, introduces a stronger regulatory foundation and places clear responsibilities on operators to align with updated requirements. According to the Commission’s leadership, any individual or organisation offering a tradable instrument must register with the regulator and complete all processes before the January 2026 compliance deadline. This obligation covers everything from traditional securities to emerging digital instruments, reflecting the evolving nature of today’s marketplace.
The regulator described ISA 2025 as a forward-looking instrument designed to deepen the capital market, drive innovation, strengthen investor protection and enhance global competitiveness. It is expected to reinforce transparency, improve market integrity, and give operators a clearer structure for compliance. The Act also enhances the regulator’s ability to ensure fair practices and introduces a more robust governance framework that aligns with international standards.
The reform was driven by the rise of digital trading, fintech platforms, and virtual assets, as well as the growing need to address systemic risks, clamp down on market abuse, and prevent fraudulent investment schemes. For the first time, the Act explicitly outlines the regulatory objectives, functions, and powers of the Commission, including protecting investors, maintaining transparent markets, reducing risk, and supporting capital formation. This clarity closes long-standing gaps that previously made enforcement and oversight more difficult.
The Act also expands the regulator’s investigative capacity beyond licensed operators to include unrelated third parties when necessary for enforcement. This closes major loopholes that once hindered action against complex schemes and reinforces the regulator’s commitment to a more secure market environment.
For the wider economy and for MSMEs in particular, the new framework offers the promise of a safer and more dependable investment climate. A clearer regulatory structure means improved confidence for small businesses seeking capital, better protection for retail investors, and a more efficient marketplace that can support long-term growth.
