ANALYSING THE SUITABILITY OF THE INVESTMENT AND SECURITIES ACT, 2025 FOR NIGERIAN COOPERATIVES’ CAPITAL MARKET PARTICIPATIONS

Abstract

There has been considerable growth in the awareness of Nigerians about the purpose and relevance of the capital markets to modern economics and their daily lives.  There is visibly increase in the participation of Nigerians in business activities associated with the Nigerian capital markets. Identified actor individuals, and registered companies, and a relatively new entrant, the Nigerian cooperatives societies. Some of these activities have been in strict adherence to the enabling laws, while some others run fouls of enabling legislation. The Nigerian cooperative movement has since been confined to a quagmire in the circumstance, the gravamen being questions around the legality or otherwise of cooperatives participation in the Nigerian capital markets.  The study adopts doctrinal method of legal research via analytical review of the relevant legislation.  The analysed legislations include the Nigerian Investment and Securities Act, 2025; the Nigerian Cooperative Societies Act, 2004; the Companies and Allied Matters Act, 2020; and the Cooperative Development Act, 2004. The study finds that in Nigeria, the cooperative identity is currently paraded by societies lawfully registered as cooperatives and those unregistered as cooperatives; that there is no legislation that expressly prohibits the participation of cooperatives in the capital markets; and that there is no legislation that expressly enables cooperatives to participate in the capital markets; (d) some of the lawfully registered cooperative societies are unaware of the capital markets, while those aware are very cautious albeit reluctant to embrace it. the study finds further that there is an atmosphere of uncertainty about the intersection of cooperatives and the Nigerian capital market. The study proffer pragmatic recommendation with a view to remedy the identified deficiencies with insightful proposals to optimally harness inherent potentials