Izunaso says sustained legal reforms and ISA 2025 will deepen investor confidence and modernise Nigeria’s financial markets…..
The Chairman of the Senate Committee on Capital Market and Institutions, Senator Osita Bonaventure Izunaso, has called for sustained legislative reforms to strengthen Nigeria’s capital market, saying a robust legal framework is essential for attracting investment, protecting investors and driving long-term economic growth.
Izunaso made the call while delivering a paper titled “Legislative Leadership and Capital Market Development in Nigeria: Strengthening the Legal Framework for Economic Transformation” at the 16th Fellowship Inaugural Lecture of the Capital Market Academics of Nigeria (CMAN).
He said the National Assembly has remained at the forefront of efforts to strengthen the country’s capital market through legislation, oversight, budgetary support and regular reviews of securities laws to keep pace with global financial developments.
According to the senator, the recently enacted Investments and Securities Act (ISA) 2025 represents one of the most significant reforms in Nigeria’s financial sector in recent years.
He explained that the new legislation replaces the Investments and Securities Act 2007 with a modern framework designed to address the realities of an evolving global financial system.
Izunaso noted that the law enhances investor protection, broadens the enforcement powers of the Securities and Exchange Commission (SEC), provides legal recognition for digital assets and virtual asset service providers, establishes a clearer regulatory framework for financial market infrastructure and aligns Nigeria’s securities regulations with international best practices.
He described an efficient capital market as a key driver of economic development, noting that it plays a vital role in mobilising long-term savings, financing infrastructure projects, supporting private sector expansion and promoting sustainable economic growth, particularly at a time when governments are facing mounting fiscal pressures.
While acknowledging the progress made through regulatory reforms, technological innovation and stronger institutions, the senator said the market still faces several challenges that require urgent attention.
He identified low retail investor participation, rising inflation, exchange rate volatility, cybersecurity threats and the rapid growth of financial technology and digital assets as some of the issues confronting Nigeria’s capital market.
According to him, addressing these challenges will require continuous legislative innovation that encourages financial innovation while safeguarding investor interests and preserving market integrity.
Izunaso stressed that the responsibility of the National Assembly goes beyond enacting laws, adding that lawmakers must also ensure effective oversight of regulatory agencies, monitor policy implementation and support reforms that promote transparency, accountability and investor confidence.
He further stated that the successful implementation of the Investments and Securities Act 2025 would depend on close collaboration among key stakeholders, including the Securities and Exchange Commission (SEC), the Nigerian Exchange Group (NGX Group), the Investments and Securities Tribunal, the Central Bank of Nigeria (CBN) and other financial sector institutions.
According to the lawmaker, such collaboration is necessary to ensure that the new legal framework achieves its objectives of strengthening Nigeria’s capital market and positioning it to support sustainable economic transformation.
