By Seun Ibiyemi
The Chairman of the Senate Committee on Capital Market, Senator Osita Izunaso, has praised President Bola Tinubu for signing the Investments and Securities Act (ISA) into law.
He stated that the signing of the Investments and Securities Act (ISA) has laid the foundation for the $1 trillion economy proposed by Tinubu’s administration.
Izunaso made this remark in an interview with journalists in Abuja on Wednesday.
It is worth noting that Izunaso had sponsored the Bill for the repeal and reenactment of the ISA, which was signed into law by President Tinubu in March.
During his 2023 Presidential campaign, Tinubu had pledged to create a jumbo-sized economy, targeting a GDP of $1 trillion by 2030.
In his comments, Izunaso also mentioned that with the new law in place, Nigeria would see the end of Ponzi schemes, while fostering the growth of digital assets and cryptocurrency.
He said, “The Investments and Securities Act that has just been signed by Mr President is a comprehensive enactment.
“By repealing the 2007 ISA and re-enacting it in 2025, we have reset Nigeria’s entire investment and securities law.
“For the first time in Nigeria’s history, digital assets and cryptocurrency are now officially recognised as a form of security.
“This means that people can now trade with digital assets, engage in cryptocurrency transactions, and these activities will be properly regulated by the Securities and Exchange Commission.
“It also means that virtual asset services providers and digital asset operators are now under the purview of the SEC.”
Izunaso noted that Nigeria ranks among the top global players in cryptocurrency, stating that significant amounts of money had flowed through the country without regulation.
He said, “Today, Mr President is discussing a $1 trillion economy. By signing this Act into law, Nigeria is now poised to achieve that goal.
“If we are to reach the $1 trillion economy that Mr President envisions, we must support both the money market and the capital market.
“Today, the capital market has been reset to serve this purpose.
“I would also like to make it clear that the days of Ponzi schemes, insider trading, and market manipulation are over in Nigeria.
“Today, if you are caught in a Ponzi scheme, you risk imprisonment for up to 10 years.
“Additionally, you will face fines ranging from N20 million to N40 million, and all the money you took from people will be recovered.”
Izunaso continued, “We have now classified exchanges into two categories: composite exchanges, where multiple trading is allowed, and non-composite exchanges, which focus on single security trading. This approach aims to enhance market regulation and reduce risk.
“The new law fosters investor confidence and positions Nigeria better on the global stage, as the 2007 ISA was not in compliance with the standards set by the International Organisation for Securities Commissions (IOSCO).
“The new law aligns with IOSCO regulations, enabling international trading in Nigeria based on transparent, established records, rather than the unregulated practices of the past.
“There are numerous improvements in this law. Today, we are making capital market operations much more transparent,” he said.
The Senator also added that the new law enables sub-national governments to access the capital market for long-term loans to finance their projects.
“With this new law, states and local governments can now approach the capital market for long-term funding.
“Rather than relying solely on federation accounts and commercial loans, states and the 774 local governments can now turn to the capital market to secure long-term funding for their projects,” he concluded.