Analyzing the Investments and Securities Act (2025): An Exposition into Regulatory Oversight and Digital Assset Regulation in Nigeria’s Capital Market

The enactment of the Investments and Securities Act 2025 (ISA 2025) marks a significant milestone in the evolution of Nigeria’s capital market regulatory framework. Repealing the Investments and Securities Act 2007, the new legislation introduces far-reaching reforms aimed at modernising securities regulation, strengthening investor protection, enhancing market integrity, and aligning Nigeria’s capital market with international best practices. This article critically examines the legal innovations introduced by the ISA 2025, with particular emphasis on the the statutory recognition and regulation of digital and virtual assets. Adopting a doctrinal research methodology, the study analyses the provisions of the Act regulatory instruments, comparative international frameworks, and contemporary scholarly literature. It argues that the ISA 2025 represents a paradigm shift from a predominantly reactive regulatory regime to a proactive and technology-responsive framework capable of addressing emerging challenges associated with digital finance, fintech innovation, and increasingly sophisticated capital market activities. The article further contends, however, that the effectiveness of the reforms will ultimately depend on coherent institutional coordination, particularly between the SEC and the Central Bank of Nigeria, the issuance of clear subsidiary regulations, consistent enforcement, and a regulatory approach that balances investor protection with innovation. The study concludes that while the ISA 2025 significantly enhances Nigeria’s capacity to regulate a modern capital market and improves its attractiveness to domestic and foreign investors, sustained implementation and regulatory coherence remain essential to achieving the Act’s transformative objectives.

Keywords: Investments and Securities Act 2025; Securities and Exchange Commission; capital market regulation; digital assets; virtual assets; fintech; investor protection; financial market infrastructure; securities law.