On March 31, 2025, Nigeria took a bold step toward reshaping its capital markets as President Bola Ahmed Tinubu signed the Investment and Securities Act, 2025 (the “Act”) into law, the most significant overhaul of capital market regulation in nearly two decades. This new legislation replaces the Investment and Securities Act, 2007, and introduces sweeping reforms to strengthen the powers of the Securities and Exchange Commission, address the realities of digital finance, and bring Nigeria’s capital markets in line with international best practices. Some key highlights include:
- Formal recognition of digital assets as securities.
- Stricter penalties for Ponzi and pyramid schemes;
- A dual licensing model for securities exchanges;
- Clearer governance and oversight over public companies and market infrastructure;
- Mandatory Legal Entity Identifiers (LEIs) for market participants.
We have prepared a detailed briefing note outlining the Act’s key provisions and what they mean for market operators, digital asset businesses, and investors. You can access it by clicking the download button below. For further guidance on how this may affect your business or to discuss regulatory compliance strategies, please reach out to us at clientservices@tlpadvisory.com.