Recently, the National Assembly of the Federal Republic of Nigeria repealed the Investments and Securities Act, No. 29, 2007 (ISA 2007) and enacted The Investments and Securities Act 2025 (ISA 2025) to establish the Securities and Exchange Commission (SEC) as the apex regulatory authority for the Nigerian capital market as well as to regulate the market to ensure capital formation, the protection of investors, maintenance of fair, efficient and transparent market and reduction of systemic risk; and for related matters.
The enactment of the ISA 2025 introduces significant changes and innovations to the legal framework of investment securities in Nigeria. This article therefore identifies and examines some of these changes and innovations to enable practitioners and stakeholders to update their knowledge of the rules guiding investments and securities in Nigeria.
Some of these changes and innovations have identified and discussed below as follows:
- Categorization of Securities Exchanges for registration purposes
Under the ISA 2007, the SEC accepted registration of securities exchanges (without categorization) and also accepted registration of capital trade points. See section 28 of the ISA 2007.
However, the ISA 2025 introduced a broad categorization of securities exchanges for ease of registration and to enhanced specialized operations.
Section 27 of the ISA 2025 provides two new categories of exchanges, namely: (i) composite securities exchanges; and (ii) non-composite securities exchange.
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