ISA 2025: The Catalyst for Economic Growth — International Edition (English)

The Securities and Exchange Commission (SEC) has stated that the Investments and Securities Act of 2025 is a transformative measure with significant potential to boost development within Nigeria’s capital market and overall economy.

The Director-General of the SEC, Dr Emomotimi Agama, mentioned during an interview in Abuja that one of the key points highlighted in the ISA 2025 is how transformative the new legislation is across various aspects. He explained that it allows the SEC to maintain its A-status recognition within the International Organization of Securities Commissions.

Agama said this is significant because it allows other countries to benchmark the Nigerian SEC and capital market with other jurisdictions which will drive friendly investments and investors into the Nigerian capital market and also expand the capital market reach in Nigeria.

The Director General of the SEC mentioned that one of the key features of the new law is the expanded possibilities for fundraising within the Nigerian capital market. Additionally, the law addresses the regulation of online foreign exchange activities, which many Nigerians participate in, and introduces provisions for regulating digital assets in Nigeria.

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As he stated, "This development is significant because within Nigeria’s youth populace, numerous individuals participate in this field. Hence, offering clear guidelines and establishing a proper legal foundation for these activities is crucial for progress. Additionally, the introduction of the Legal Entity Identifier into Nigerian legislation addresses issues related to derivative transactions."

The legal framework comprehensively covers the commodities sector, offering regulations that span from the spot market to both the derivatives and secondary markets. Additionally, this legislation eliminates constraints imposed by state and local governments on raising capital and fostering development within their jurisdictions, including municipalities. This is quite significant.

The head of the SEC stressed that the provisions of this legislation are immensely significant and foundational in fostering a vibrant, robust, and solid capital market. This market will play a crucial role in advancing the country’s economic growth and supporting the president's aim of achieving a one-trillion-dollar economy.

Beyond everything mentioned, DAgama stated that the core purpose of this legislation is to foster a vibrant, inclusive, and robust capital market for the economy. He further emphasized that the Commission is dedicated to advancing both the capital market and Nigeria’s economic progress.

He said, “The capital market is strong enough to provide the much-needed funding for various sectors of the economy. It is one of the strongest you can think about; our ROI was one of the best in the world for last year. When you look at what the capital market has already done with the bank recapitalisation, which is still ongoing, you can agree with me that our market is strong.

Currently, the Nigerian stock market has enabled banks to raise capital amounting to 2.4 trillion naira and the figure continues to grow. This milestone has not been achieved before in our nation’s history. It is our duty to promote development, foster transactions, and ease capital flow, which we have accomplished effectively through this initiative. Additional organizations are also planning to raise funds. Not long ago, the Federal Ministry of Finance raised 250 billion naira for housing support in Nigeria.

“This tells you the capital market is resilient and it is showing in the activities that are happening in the capital market. In terms of market recapitalization, it has moved to over N65 trillion and that tells you that the capital market in Nigeria is moving forward.”

The Director General of the SEC also praised President Bola Ahmed Tinubu for his consistent backing and likewise conveyed gratitude to the National Assembly along with the Minister of Finance and the Minister of State Finance.

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