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President Bola Tinubu has signed the new Investments and Securities Act (ISA) 2025 into law, introducing sweeping changes to Nigeria’s investment regulations. One of the most impactful reforms makes it illegal to operate online foreign exchange (forex) trading platforms or digital asset exchanges without proper registration.
According to Legit.ng, this decision is part of the federal government’s broader effort to protect investors and tighten oversight in the rapidly growing digital finance space. The new law targets platforms operating without the approval of the Securities and Exchange Commission (SEC), which now holds wider regulatory authority.
Any online forex or digital exchange platform currently operating in Nigeria without SEC registration is now considered unlawful. Those who fail to comply may face sanctions, with the SEC urging operators to report to its HOD DRM department for guidance on compliance.
The SEC confirmed this position over the weekend, making it clear that both individuals and companies are now legally bound to register before offering such services. “By virtue of this Act, it is an offence in Nigeria for any entity that is not registered by the Commission to carry out the business of online foreign exchange trading platforms or related services,” the Commission stated.
Section 3(3)(b) of ISA 2025 grants the SEC the authority to regulate all forms of securities exchanges, including digital and virtual platforms. This extends the Commission’s influence to areas that were previously unregulated under the old law.
Dr. Emomotimi Agama, Director General of the SEC, has emphasized the importance of aligning innovation with regulation. He stated that the law positions the capital market to be more inclusive and responsive to global practices.
Investors are now responsible for verifying a platform’s SEC registration status before engaging with it. This shift places more accountability on users while discouraging illegal investment schemes.
The SEC has also announced its intention to crack down on Ponzi operators, empowered by new legal backing under the ISA 2025. The Commission now has the authority to initiate legal proceedings against promoters of unregistered and fraudulent schemes.
Agama has urged all stakeholders in the finance and investment space to review the provisions of the new law. Full compliance, he stressed, is now a requirement, not an option.
Article updated 1 week ago. Content is written and modified by multiple authors.
