The Securities and Exchange Commission (SEC) of Nigeria is spearheading a comprehensive overhaul of the nation's capital market, positioning it as a dynamic engine for sustainable economic growth and diversification. Under its strategic leadership, the market is being transformed into a more resilient, inclusive, and globally competitive financial hub, with recent reforms already yielding significant results.
Legal Foundation and Market Integrity
A cornerstone of this transformation is the groundbreaking Investments and Securities Act (ISA) 2025. This legislation represents a complete overhaul of the regulatory framework, designed to address the complexities of modern finance. It empowers the SEC with enhanced regulatory powers to tackle market abuses and cybersecurity threats. Crucially, the Act provides clear guidelines for digital assets and cryptocurrencies, fostering fintech innovation while safeguarding investors.
Parallel to this, the Commission has launched an aggressive crackdown on illegal investment schemes through its "Operation Know and Verify" campaign. Leveraging advanced surveillance and the strengthened powers of the ISA 2025, the SEC is imposing severe sanctions on perpetrators and running massive public enlightenment drives to protect Nigerians' investments.
Driving Growth and Inclusivity
The SEC is strategically promoting the Non-Interest Finance (NIF) segment to unlock ethical capital for national development. By establishing a robust regulatory framework for products like Sukuk, the Commission is attracting a vast pool of domestic and international funds. This focus extends beyond religious considerations to tap into global ethical financing trends, aiming to fund critical infrastructure, housing, and agricultural projects.
These strategic reforms have translated into tangible, impressive growth. The Nigerian Exchange Limited (NGX) has witnessed a historic surge in market capitalisation. As of the end of November 2025, the market cap stood at N91.286 trillion, a staggering increase of 45.5% from the N62.763 trillion recorded at the close of 2024. Similarly, the NGX All-Share Index rose by 39.44% to 143,520.53 basis points. This growth is fueled by renewed investor confidence, new listings, and the robust performance of key sectors like banking and telecommunications.
Global Alignment and Technical Efficiency
Recognizing that no market thrives in isolation, the SEC has actively re-engaged with the global financial community. Through active membership in bodies like the International Organization of Securities Commissions (IOSCO), targeted international roadshows, and signing bilateral MoUs, Nigeria is aligning its standards with global best practices to attract foreign investment.
In a landmark move for operational efficiency, the SEC successfully orchestrated the transition from a T+3 to a T+2 settlement cycle. This means trades are now settled in two business days instead of three, reducing counterparty risk, enhancing liquidity, and bringing Nigeria in line with leading global markets like the United States and Europe.
The Commission's work is further bolstered by strategic collaborations with development finance institutions, including the World Bank, the International Finance Corporation (IFC), and FSD Africa. These partnerships provide critical technical assistance for market development, risk-based supervision, and investor education programs.
The journey led by the SEC is a clear narrative of purposeful transformation. By building a stronger legal foundation, protecting investors, promoting inclusive finance, and enhancing technical efficiency, the Commission is constructing more than just a market—it is building a sustainable platform for Nigeria's long-term economic prosperity. The record-breaking market capitalization is a powerful testament to the success of this multifaceted strategy.
