By Chukwuma Umeorah
The Association of Securities Dealing Houses of Nigeria (ASHON) has urged the Securities and Exchange Commission (SEC) to provide a transition window for capital market operators to fully align with the newly signed Investment and Securities Act 2025.
In a statement, the association called for a cooling-off period ahead of the full implementation of the law, citing the need for adequate time to understand the updated regulatory provisions, particularly those concerning digital assets, crowdfunding, and emerging financial technologies.
Speaking at a workshop held in Lagos to examine the implications of the new legislation, the Chairman of ASHON, Sam Onukwue, commended the SEC’s efforts to modernise Nigeria’s capital market but appealed for a phased rollout of the reforms. He added that while regulatory reform is necessary, sufficient time must be given for operators to adapt effectively to avoid disruptions in market operations.
“We commend the SEC for the passage of ISA 2025, which reflects global trends in capital market regulation. However, we are asking for a cooling-off period that will allow our members to understand the new law better before full enforcement,” Onukwue said.
The newly enacted ISA 2025 introduces sweeping changes to the regulatory framework, including clear provisions for the supervision of Virtual Asset Service Providers (VASPs), governance of digital investment products, and expanded prosecutorial powers for the SEC in dealing with infractions.
Participants at the workshop, which included legal and market experts, expressed concerns over the preparedness of operators, warning that sudden enforcement without sufficient familiarisation could lead to unintended non-compliance and regulatory sanctions.
Responding to ASHON’s position, the Executive Commissioner for Operations at the SEC, Bola Ajomale, acknowledged the concerns but advised market participants to begin building capacity and engaging experts to ensure proper compliance.
“I urge ASHON members and all stakeholders to invest in capacity building. Employ professionals, study the Act thoroughly, and understand the risks and responsibilities that come with it,” Ajomale noted.
He also encouraged market participants to adopt a self-reporting approach in the event of accidental breaches, suggesting it would help mitigate enforcement penalties.
The workshop featured technical sessions on translating the new law into practical compliance, including topics such as ‘Translating the New ISA 2025 Act into Practice’, ‘Legal Perspectives on Digital Assets & Regulatory Frameworks’ and ‘The ISA 2025 and Digital Innovations’.