Nigeria’s newly signed Investment and Securities Act (ISA 2025) has empowered the Securities and Exchange Commission (SEC) to obtain user data from all telecom and electronic communication companies in Nigeria in the process of implementing the law.
Also, section 3(4)(j) of the Act allows the SEC to have access to the content of communication in case of any violation of the law.
This new provision is meant to empower the Commission to obtain phone, internet, and electronic records, which would immensely facilitate its investigation and enforcement process.
Emomotimi Agama, Director-General, Securities and Exchange Commission had said that the new Investment and Securities Act (ISA 2025) which President Bola Ahmed Tinubu recently signed empowered the SEC to prosecute promoters of Ponzi schemes with a possible sentencing to at least 10 years imprisonment.
Agama said, “With the new law, they now face a 10-year jail term and beyond”. In addition, he said anyone caught operating a Ponzi scheme in Nigeria would also be made to pay a N40 million penalty according to the law.
The SEC DG stated this on Tuesday during an Arise TV interview, where he spoke extensively about the new ISA. He noted that before now, the SEC had no legal backing to prosecute Ponzi scheme operators, adding that this had made it difficult to bring them to justice.
“The SEC shall have the powers to obtain subscriber records held or maintained by internet service providers, telephone service providers and other electronic communication providers located within Nigeria which identify subscribers, payment details and other relevant details including content of communication in connection with the violation or suspected violation of this bill or other securities laws, code and regulations,” it stated.
Nigeria’s new capital market laws now officially classify cryptocurrencies and other virtual assets as securities for the first time, in what would lead to greater transparency and increased investments.
President Bola Tinubu recently assented to the Investments and Securities Act (ISA) 2024, which repeals the Investments and Securities Act No. 29 of 2007.
The Act explicitly recognises virtual/digital assets and investment contracts as securities and brings Virtual Asset Service Providers (VASPs), Digital Asset Operators (DAOPs) and Digital Asset Exchanges under the SEC’s regulatory purview.
This means businesses dealing in digital assets must register with the SEC and comply with its guidelines, a crucial step in curbing fraudulent activities in the digital space while fostering trust and innovation in blockchain technologies.