INVESTMENT AND SECURITY ACT (ISA) 2025

What Is This Policy?

The Investments and Securities Act is Nigeria’s primary legislation governing investments, securities trading, and capital market operations. It defines the powers of the SEC, sets rules for market participants, and provides mechanisms for investor protection, systemic risk management, and fair market conduct.

Who Does It Target?

At its core, it regulates capital market operators such as brokers, dealers, investment advisers, and fund managers, ensuring they operate transparently and responsibly. It also targets securities exchanges and financial market infrastructures, providing the legal framework for their registration, regulation, and oversight.

What Does It Aim to Achieve?

The overarching objective of the ISA is to strengthen Nigeria’s capital market as a driver of economic growth and capital formation. It seeks to ensure that the market operates in a fair, efficient, and transparent manner, thereby attracting both domestic and foreign investment.

Key Features

Establishment of the Securities and Exchange Commission (SEC) as apex regulator. Regulation of securities exchanges, clearing houses, and commodity markets. Oversight of capital market operators (brokers, dealers, fund managers). Provisions for mergers, acquisitions, and takeovers. Creation of an Investor Protection Fund. Rules for collective investment schemes and systemic risk management.

Current Status

Rollout Stage: active implementation Coverage: applies nationwide Beneficiaries to Date: millions of investors and companies Funding: registration fees, market levies, and government allocations.

How to Access

Full text of the ISA 2025 can be accessed through: Center for Laws of Nigeria (official repository of federal laws). LawGlobal Hub (legal database). SEC Nigeria publications.

Important Terms

Term 1-Systemic Risk: The risk of collapse in the financial system due to interconnected failures; the ISA mandates measures to mitigate this. Term 2- Capital Market Operators Licensed professionals (brokers, dealers, fund managers) who facilitate investment activities.

Official Resources

Securities and Exchange Commission (SEC Nigeria): https://sec.gov.ng Federal Ministry of Finance: https://finance.gov.ng Contact: SEC Headquarters, Abuja – [email protected] Link to document- Link to document

Legal Framework

Constitution of the Federal Republic of Nigeria 1999; Companies and Allied Matters Act; Foreign Exchange (Monitoring and Miscellaneous Provisions) Act; Investment and Securities Act 2007 (being repealed); Nigerian Investment Promotion Commission Act