The Securities and Exchange Commission (SEC) has issued a firm directive to all Capital Market Operators (CMOs), mandating the full disclosure of their compliance status and the compulsory registration of every tradable instrument under the new Investments and Securities Act (ISA) 2025 no later than January 2026.
This declaration was made by the Director-General of the Commission, Dr. Emomotimi Agama, during the 2025 SEC Journalists’ Academy held on Wednesday in Lagos. The 2025 edition of the academy focused on the theme: “The ISA 2025 and the Future of Nigeria’s Capital Market: Innovation, Protection, and Growth.”
Speaking through the Commissioner for Operations, Mr. Bola Ajomale, Dr. Agama said the ISA 2025 ushers in a transformative era for Nigeria’s capital market. He described the Act as a “forward-looking legal framework” designed not only to replace the 2007 ISA but to reposition the market for innovation, stability, investor protection, and global competitiveness.
“If we get this right, ISA 2025 will serve as a powerful foundation for the capital market Nigeria needs and deserves—deep, efficient, innovative, and globally competitive,” Agama stated.
Clarity, Power, and Protection: What ISA 2025 Brings
Dr. Agama emphasised that one of the landmark features of ISA 2025 is the unprecedented clarity it provides regarding the mandate of the SEC. For the first time, the Act explicitly spells out the Commission’s regulatory objectives, functions, and powers. These include:
- Acting in the public interest
- Protecting investors
- Ensuring fair, transparent, and orderly markets
- Preventing unlawful market practices
- Reducing systemic risk
- Supporting capital formation and economic growth
This clarity, he explained, strengthens regulatory authority, enhances institutional accountability, and eliminates long-standing ambiguities that previously hindered effective enforcement.
Modern Enforcement Powers for a Modern Market
A major highlight of the Act is the expansion of SEC’s investigative reach—not only over regulated market operators but also over unrelated third parties where necessary.
“This closes a major loophole that hindered previous investigations into market abuse and complex financial schemes,” Agama said.
“The SEC is no longer limited by outdated definitions or narrow supervisory boundaries. The regulator now has modern tools to protect the integrity of the market.”
These enhanced powers are expected to be critical in combating Ponzi schemes, monitoring digital trading behaviour, regulating fintech activities, and supervising virtual asset transactions—areas where the old law had notable gaps.
Why the Reform Became Urgent
Dr. Agama identified several forces that made the ISA overhaul inevitable:
- The rise of digital trading, fintech platforms, and virtual assets
- The inadequacy of the 2007 Act in tackling emerging systemic risks
- Complications around new financing and investment structures
- Increased sophistication of fraud schemes and market abuses
- The need for stronger alignment with global IOSCO standards
- Nigeria’s national ambition to deepen the capital market as a key engine of economic development
According to him, ISA 2025 represents a joint commitment by the Federal Government, regulators, market stakeholders, and policymakers to modernise Nigeria’s capital-market architecture for the future.
January 2026: A Non-Negotiable Deadline
On the compliance mandate, the SEC insists that all CMOs must:
- Declare their compliance status with ISA 2025
- Ensure every tradable instrument under their platform is fully registered
- Align their operational practices with the new regulatory expectations
Those selling or facilitating the sale of tradable instruments must identify with the SEC and complete all required registrations before January 2026.
The Director-General warned that the Commission will not hesitate to enforce the law once the deadline expires.
“This is the time for every operator to comply. ISA 2025 is not optional—it is the law that will guide the future of the Nigerian capital market,” Agama stressed.
SEC mandates all Capital Market Operators to declare compliance and register all tradable instruments under ISA 2025 by January 2026, strengthening investor protection.
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