The Securities and Exchange Commission (SEC) has indicated that the Investments and Securities Act of 2025 is a transformative measure with significant potential to boost growth in Nigeria’s capital market and overall economy.
Dr. Emomotimi Agama, the Director-General of the SEC, made this statement during an interview in Abuja regarding several key points from the ISA 2025. He emphasized that the new legislation represents a significant revolution across various aspects because it grants the SEC the chance to maintain its Category A membership within the International Organization of Securities Commission.
Religion states this is important as it enables other nations to compare the Nigerian Securities and Exchange Commission (SEC) and its capital market against those of other regions. This comparison can attract more foreign investment and investors to the Nigerian capital market, thereby expanding the market’s reach within Nigeria.
The Director-General of the SEC mentioned that one of the key features of the updated law is the expansion of possibilities for fundraising within the Nigerian capital market. Additionally, this legislation includes regulations for online foreign exchange activities, in which many Nigerians participate, along with introducing laws pertaining to the governance of digital assets in Nigeria.
He stated, "This development is significant because within Nigeria’s youth populace, numerous individuals participate in this sector. Therefore, offering clear guidelines along with establishing a proper legal foundation is crucial for progress. Additionally, the introduction of the Legal Entity Identifier into Nigerian legislation addresses issues related to derivative transactions."
The legal framework effectively encompasses the commodities ecosystem, regulating various aspects from the spot market through the derivatives market to the secondary market. Additionally, this legislation eliminates constraints imposed by state and local governments on raising capital and fostering development within their jurisdictions. This is significant for our objectives.
The head of the SEC highlighted that the stipulations of this legislation are extensive and foundational in establishing a vibrant, robust, and solid capital market. This market will play a crucial role in advancing the country's economic growth and supporting President's aim to achieve a one-trillion-dollar economy.
Dr. Agama emphasized that the core purpose of this legislation is to foster a vibrant, inclusive, and robust capital market for economic growth. He further stated that the Commission is dedicated to advancing both the capital market and Nigeria’s overall economy.
He stated, "The capital market possesses sufficient strength to supply the essential financing requirements across different economic sectors. This is among the most robust markets imaginable; we boasted one of the highest returns on investment globally over the past year. Considering the current progress in bank recapitalization efforts within the capital market, you would concur that our marketplace remains resilient."
Currently, the Nigerian stock market has enabled banks to raise approximately 2.4 trillion naira, which is unprecedented in our nation’s history. It is our duty to promote growth, encourage transactions, and ease capital mobility, tasks we’ve accomplished effectively through this initiative. Additional organizations are also planning to raise funds. Not long ago, the Ministry of Finance Incorporated managed to secure 250 billion naira for housing development in Nigeria.
Provided by SyndiGate Media Inc. Syndigate.info ).