Experts: why Investment, Securities Act is a game changer

By The Nation Udeh Onyebuchi

The Nigerian capital market community has endorsed the Investment and Securities Act (ISA) 2025 as a transformative law poised to reshape the nation’s financial future.

At the 2025 Annual Business Summit of the Capital Market Solicitors Association (CMSA), held in Lagos, key stakeholders declared the new legislation a “game changer” for economic development, regulatory modernisation, and market expansion.

The summit, with the theme: “Innovations and Opportunities in the Nigerian Capital Market,” brought together a cross-section of the country’s financial elite: regulators, legal experts, investment professionals, commodity traders, and government representatives.

They unpacked the provisions and possibilities embedded in the newly signed ISA 2025, and all agreed—it signals a new era for Nigeria.

Chairman of CMSA, Odiaka Iweze, described the new law as more than a legislative upgrade.

“ISA 2025 is a platform to reimagine the capital market, to drive innovation, and to open up opportunities for inclusive and sustainable growth,” he said.

Vice Chair of CMSA, Simisola Eyisanmi, emphasised that the timing of the legislation could not be more significant.

“We are no longer speculating on reform—ISA 2025 has codified it.

“This Act has blown the doors wide open for virtual securities, bilateral markets, commodity exchanges, and regulatory clarity,” she said.

The ISA 2025 offers new pathways for real estate tokenisation, infrastructure financing, fintech-backed platforms, sustainable energy investment, and deeper public participation.

With over 70 million Nigerians under the age of 30 and less than five per cent currently participating in the capital market, the growth potential is undeniable.

“This is our chance to shape a $1 trillion economy, and the ISA is the foundation. We must seize this moment,” Eyisanmi said.

Among the most celebrated aspects of the ISA 2025 is its redefinition of what constitutes security.

Managing Director of the Lagos Commodities and Futures Exchange, Akinsola Akeredolu-Ale, highlighted the inclusion of warehouse receipts, precious metals, and energy products under the law.

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“Before now, warehouse receipts were mere documents; now, they are securitised instruments backed by law, recognised by the SEC, and supported by a full risk management framework.

“The Act gives commodity producers a direct line to capital market financing,” he explained.

He also noted that the commodities market now spans not just agriculture, but also oil, gas, and solid minerals—each of which presents multibillion-naira investment opportunities.

Managing Director of Nigerian Bulk Electricity Trading Plc (NBET), Johnson Akinnawo, provided an account of how the ISA—when aligned with the Electricity Act 2023—can revitalise Nigeria’s struggling power sector.

NBET’s leadership revealed plans to establish a day-ahead energy exchange platform, using artificial intelligence to facilitate secure, transparent electricity trading between willing buyers and sellers.

With power sector debts exceeding N4 trillion and chronic infrastructure bottlenecks across transmission and distribution, the creation of a structured, securitised electricity marketplace could be a major breakthrough.

He said: “This is about building a financial system that makes energy bankable and investible.

“ISA 2025 gives us the tools to structure power as a tradable commodity.”

Minister of State for Finance, Dr. Doris Uzoka-Anite, positioned ISA 2025 as a bold legislative response to Nigeria’s economic ambitions.

“This is not just a policy document. It is a statement of intent—Nigeria is open for regulated, modern, and transparent investment,” she said.

She highlighted the Act’s introduction of investor protection funds, stricter regulation of digital platforms, and increased penalties for Ponzi schemes and fraudulent operators.

“New provisions empower the SEC to penalise sponsors of Ponzi schemes and enhance whistleblower protections,” she said.

Several speakers addressed the ISA’s provision for digital and virtual securities, including blockchain applications, tokenised real estate, and AI-powered trading.

Managing Director of Coronation Trustees, Yemi Sadiku, said: “The capital market is a mirror of trust.

“With ISA 2025, we’re not just polishing that mirror—we’re reshaping the image entirely.”

He called on capital market solicitors to move beyond passive compliance to active leadership in legal structuring, fintech engagement, and investor education.

CEO of Prosperis Holdings, Samson Fadahunsi, agreed.

“From ESG-compliant instruments to beta assets like crypto, this Act opens up a new world. We now have the infrastructure to innovate, protect, and scale.”

Director-General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, described the ISA 2025 as “our collective responsibility.”

“This is the most comprehensive legal document in our capital market history.

“It allows Nigeria to sit at the same table with the U.S. SEC, UK FCA, and global financial regulators. But the law will mean nothing if we do not execute it,” he declared.

Agama encouraged lawyers, brokers, and investment houses to read the Act thoroughly and find their roles in implementing it.

“You are the architects of this transformation. The SEC will enforce, but you must lead,” he said.

Founder of CMSA and Chairman of its Board of Trustees, Chief Anthony Idigbe (SAN), urged lawyers to develop their skills for cross-border legal services.

He said: “Your ability to trade or be a good lawyer and walk cross-border also depends on how prepared you are.

“Are you job-ready to walk into a cross-border situation when you leave law school in Nigeria? How do you do it?

“The future of legal practice depends on how well we prepare our lawyers for a cross-border world.

“Collaboration is not optional. It’s a necessity in the face of changing global dynamics.

“We must ask ourselves: who are we producing in our legal institutions? Are they globally competent?

“Are we producing lawyers who, from day on,e can plug into a global law firm and work at a cross-border level?”

According to him, the challenge of liberalisation is how to balance self-determination with the need for global cooperation.

“Your clients have problems all over the world; you must be ready to help them wherever they are,” Idigbe advised.

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