The Chairman of the Senate Committee on Capital Market and Institutions, Osita Bonaventure Izunaso, has called for sustained legislative reforms to strengthen Nigeria’s capital market.

According to the senator, a modern legal framework is critical to attracting investment, protecting investors and supporting long-term economic growth.

Presenting a paper on ‘Legislative Leadership and Capital Market Development in Nigeria: Strengthening the Legal Framework for Economic Transformation’ at the 16th Fellowship Inaugural Lecture of the Capital Market Academics of Nigeria (CMAN), Izunaso said the National Assembly had played a central role in shaping the country’s capital market through law-making, oversight, budgetary support and continuous review of securities legislation.

He said the recently enacted Investments and Securities Act (ISA) 2025 represented one of the most significant reforms in Nigeria’s financial sector in recent years, replacing the 2007 Act with a framework designed to meet the realities of a fast-changing global financial system.

According to him, the new law strengthens investor protection, expands the enforcement powers of the Securities and Exchange Commission (SEC), provides legal recognition for digital assets and virtual asset service providers, establishes a clearer framework for financial market infrastructure and aligns Nigeria’s securities regulation with international standards.

Izunaso also noted that an efficient capital market remains essential for mobilising long-term savings, financing infrastructure, supporting private sector expansion and creating sustainable economic growth, especially as governments face increasing fiscal pressures.

He observed that while Nigeria’s capital market has recorded significant progress through reforms, technological advancement and institutional strengthening, it continues to face challenges such as low retail investor participation, inflation, exchange rate volatility, cybersecurity risks and rapid emergence of financial technology and digital assets.

According to him, addressing the issues would require continuous legislative innovation that balances financial innovation with strong investor protection and market integrity.

He pointed out that the National Assembly’s responsibility extends beyond passing laws to ensuring effective oversight of regulatory institutions, monitoring policy implementation and supporting reforms that improve market transparency and accountability.

Izunaso stated that the implementation of the ISA 2025 would require close collaboration between the legislature, SEC, the Nigerian Exchange Group, the Investments and Securities Tribunal, the Central Bank of Nigeria (CBN) and other financial sector institutions to ensure the law delivers its intended objectives.