Nigeria Enacts Investments and Securities Act 2025, Officially Recognizing Cryptocurrencies

President Bola Ahmed Tinubu has agreed to the Nigerian Investment and Securities Act (ISA) 2025.

In a local report, the Nigerian President assented to the new Act, which signifies a new dawn in the Nigerian capital market and discontinues the 2007 Investment and Securities Act, No. 29.

In a major boost to capital market regulation in Nigeria, President Ahmed Bola Tinubu GCFR, has assented to the Investments and Securities Bill (ISB) 2025, which repeals the Investments and Securities Act No. 29 of 2007 and enacts the Investments and Securities Act 2025. pic.twitter.com/dQEvNZ9qrp

— SEC Nigeria (@SECNigeria) March 29, 2025

The new law introduces reformations that strengthen the Nigerian capital market, protect investors’ capital, promote an efficient and transparent market, and also work for sustainable growth.

In addition, the ISA 2025 further recognizes the Nigerian Securities and Exchange Commission as the highest regulatory body of the Nigerian capital market.

ISA 2025 to Align Financial Markets with Global Standards, SEC Chief Says

ISA 2025, which is yet to be released to the public, entails innovations that are projected to contribute to the present administration’s economic framework and further align the country’s financial market dealings with globally recognized practices.

While commenting on the newly enacted law, Emomotimi Agama, the Director-General of the SEC, applauded the development and described it as a transformative step for the capital market.

He added that the Investment and Securities Act of 2025 reflects the commission’s unwavering commitment to enabling a thriving and resilient capital market that accommodates all interested individuals.

He further stated that:

“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.”

Additionally, he expressed profound appreciation to all stakeholders and the capital market community for their perseverance in achieving this historic milestone.

He also stated that the SEC commended the President and the National Assembly for their patriotism and boldness in enacting the new legal framework for the Nigerian capital market.

Furthermore, he emphasized that the contributions of all the aforementioned bodies, including Ministers of Finance, actualized this breathtaking achievement.

“The SEC would continue to engage with market operators, investors, and all stakeholders to ensure a seamless transition from the repealed ISA 2007 to the new legal regime established under the ISA 2024,” he noted.

Nigeria Recognizes Crypto, SEC to Regulate Exchanges and VASPs

Previously, Nigeria’s stance on cryptocurrency and digital assets was generally clouded with ambiguity. However, a recent report quoted the Minister of Information as having affirmed the country’s support for a regulated crypto environment.

The Minister pointed to Nigeria’s hassle-free operation of crypto exchanges as a reference for the country’s pro-crypto stance. He added that regulations are what they call for to actively combat money laundering and terrorism funding.

🛑 NEW: The Nigerian government has stated it remains open to cryptocurrency businesses despite filing an $80 billion lawsuit against Binance over alleged economic losses and tax evasion.

Officials emphasize that crypto regulation is still evolving, and Nigeria aims to create a… pic.twitter.com/8FSAB5AIr1

— Coinwaft (@coinwaft) March 25, 2025

The newly signed Act now recognises virtual/digital assets and investment contracts as securities. It brings Virtual Asset Service Providers (VASPs), Digital Asset Operators (DAOPs), and Digital Asset Exchanges under the SEC’s regulatory requirements.

Notably, the ISA 2025 Act classifies Securities Exchanges into Composite and Non-composite Exchanges.

A Composite Exchange embodies all categories of securities and products that can be listed and traded, while a Non-composite Exchange focuses on a singular type of security or product.