ISA 2025 Expansion of Asset Classes a Boost for Nigerian Capital Market – CSCS

The Central Securities Clearing System (CSCS) Plc has hailed the Investment and Securities Act (ISA) 2025 as a major milestone for Nigeria’s capital market, noting that the expansion of recognised asset classes, including digital assets, will unlock significant investment opportunities.

Akinwonuola Atitebi, Head of Treasury and Investments at CSCS, made the remarks on Saturday during a panel discussion at the annual conference of the Capital Market Correspondents Association of Nigeria, themed “Regulatory Reforms: ISA 2025 and Investment Climate.”

President Bola Tinubu earlier this year assented to the ISA, which formally recognises digital assets such as cryptocurrencies and makes it illegal to operate digital asset exchanges or online forex trading platforms without registration with the Securities and Exchange Commission (SEC).

Atitebi emphasised that the law reflects the evolution of markets over the last two decades. “Today’s markets are very different from a decade ago. ISA 2025 brings everything together and, importantly for CSCS, includes previously unregulated asset classes,” he said.

He added that CSCS has already begun investing in the necessary infrastructure to support trading in digital assets and pledged the organisation’s full support for the law’s implementation. “It’s one thing to have a robust legal framework. It’s another to execute it. CSCS is fully aligned with SEC’s goals and will assist in any way required to implement ISA 2025,” Atitebi said.

The ISA also incorporates proactive compliance measures to curb market abuses. Atitebi highlighted provisions such as the prohibition of cash transactions in capital markets and the requirement for dematerialisation of all securities before trading on secondary markets, calling them key steps in eliminating money laundering and other malpractices.

With ISA 2025 in force, Nigerian capital markets are poised for digital transformation while offering investors access to a broader range of investment opportunities. CSCS last month also led the transition to a T+2 settlement cycle, aligning the market with global best practices.