ISA Act 2025: what does it say about retail online forex trading in Nigeria?
The Nigeria Investment & Securities Act (ISA) of 2025 technically avoids talking about online forex trading in Nigeria. This means online forex trading remains unregulated in Nigeria.
It rather says that the Securities & Exchange Commission (SEC) who regulate the capital market in Nigeria, now have the authority to regulate cryptocurrency & commodity exchange businesses.
The ISA act mandates all crypto & online commodity investment providers in Nigeria to register with them.
After i studied it, i arrived at the conclusion that the ISA Act 2025, says nothing about online forex trading in Nigeria and doesn't specify if online forex brokers will be required to register with SEC.
This is a summary of the ISA Act 2025, that i put together:
1. Digital assets are now legally recognized as securities: this means i can choose to come up with a digital coin of my own if i follow the legal procedure specified by SEC. I can also choose to start a digital exchange registered with SEC.
2. Investment contracts can now be listed on exchanges as derivatives
3. IPO can now be carried out by more entities: an IPO is an initial public offering where shares of a new company are sold to the public to raise funds. The new ISA act of 2025 says that crowd funding schemes, collective investment schemes, government bodies, etc. can now engage in IPO to raise funds from the public.
4. We can now have dedicated exchanges: unlike in the past where Nigerian stock exchanges listed every asset, the new ISA Act says we can now have specialized exchanges example commodities exchange, fixed income exchange etc.
5. Any agency can raise funds via Islamic financing: In Nigeria SUKUK bonds are the only non-interest-bearing way of raising money and it was used by the federal government only. The new ISA Act now says that all states and local governments can now raise funds through non-interest financing.
6. Nigerian banks will now accept warehouse receipts from commodity investors: so if a commodity businessman wants a loan from a Nigerian bank, they can now present a warehouse receipt to the bank as collateral for the loan.
7. More powers have been given to the Investment & Securities Tribunal (IST): so, if you have a dispute with another market operator, the IST now has a broader range and has been given powers to resolve the dispute even if it has to do with crypto, or any unorthodox investment scheme.
8. Stiffer penalties for defaulters: the ISA Act has specified stiffer penalties for those who engage in unlawful investment businesses, those who fail to comply with existing SEC rules etc.
FG should just regulate these forex brokers in Nigeria so the scammers and influencers will reduce. From what I see in the ISA Act of 2025, FG is still not regulating them.
FG should just regulate these forex brokers in Nigeria so the scammers and influencers will reduce. From what I see in the ISA Act of 2025, FG is still not regulating them.
Interesting, our government in South Africa is already regulating forex brokers