Nigeria sets up implementation team for new Investments and Securities Act

Nigeria has reached a milestone in its regulatory landscape with the introduction of the Investments and Securities Act 2025. The Securities and Exchange Commission (SEC) has set up an implementation team to oversee the operationalization of this new act, which was recently signed by President Bola Tinubu, marking a significant shift in the country's capital market. Emomotimi Agama, the Director General of the SEC, discussed the implications and key highlights of this development in an exclusive interview with CNBC Africa. Agama emphasized the importance of updating the regulatory framework to align with the changes in the market dynamics and global economy. The previous legislation dated back to 2007, and with the evolving landscape, it was imperative to enact reforms to address emerging trends and technologies. The new act, which has been in the pipeline for over a decade, signifies a paradigm shift in the regulatory environment and sets the stage for a more robust and responsive capital market ecosystem. One of the key provisions of the Investments and Securities Act 2025 is the explicit recognition of virtual and digital assets, as well as investment contracts, as securities. This move brings Virtual Asset Service Providers, Digital Asset Operators, and Digital Asset Exchanges under the regulatory purview of the SEC, ensuring enhanced oversight and investor protection in the burgeoning digital asset space. The implementation team established by the SEC is tasked with ensuring the effective enforcement of the provisions outlined in the new act. Agama highlighted the significance of aligning with global best practices, particularly in the realm of security regulation. By complying with the International Organization for Securities Commission (IOSCO) standards, Nigeria aims to strengthen its position as an attractive investment destination and reassure international investors of its commitment to regulatory compliance. Moreover, the new legislation positions Nigeria to exit the gray list of the Financial Action Task Force (FATF) by addressing the regulation of cryptocurrencies and digital assets. The inclusion of stringent measures against Ponzi schemes, such as hefty fines and lengthy prison terms, reflects the government's determination to combat financial fraud and protect investors from fraudulent schemes. Another key aspect of the Investments and Securities Act 2025 is its focus on the commodities market, a vital component of Nigeria's economy. The legislation encompasses provisions for the regulation of commodities from farm to exchange, emphasizing the importance of transparent supply chains, proper warehousing, and collateral management. By expanding the scope to include commodities' journey from production to market, the new law aims to foster growth and stability in the agricultural sector. In conclusion, the regulatory reforms introduced through the Investments and Securities Act 2025 signal a new era for Nigeria's capital market and financial sector. The proactive approach taken by the SEC in setting up an implementation team underscores the commitment to driving sustainable growth and enhancing investor confidence in the country's market. As Nigeria embraces digital innovation and strengthens regulatory oversight, the future looks promising for the nation's economic development and investment landscape.