The newly signed Investment and Securities Act (ISA 2025) has given the Securities and Exchange Commission the power to obtain user data from all telecom and electronic communication companies in Nigeria in the process of implementing the law.
This provision in Section 3(4)(j) of the Act also allows the Commission to have access to the content of communication in case of any violation of the law.
According to the Act, this new provision is designed to empower the Commission to obtain phone, internet, and electronic records, which would immensely facilitate its investigation and enforcement process.
Under the powers of the Commission in the new law, the Act states, among others, that:
“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.”
Tackling Ponzi schemes
Earlier on Tuesday in a TV interview, the Director-General of the SEC, Mr. Emomotimi Agama, said with the new law, the Commission now has full powers to tackle the menace of Ponzi schemes in the country.
According to him, until now, the Commission had no legal backing to prosecute Ponzi scheme operators, adding that this had made it difficult to bring them to justice.
- With this, Agama said operators of Ponzi schemes in Nigeria now face a 10-year jail term and N40 million penalty if caught.
- He noted that with the new law, the Commission now has all it needs to come against bad operators and bring succor to Nigerians.
- He said this would also allow the Commission to get the “bad guys” out of the way and make sure that people are more confident and happier to invest in the Nigerian market, “knowing fully well that the investor protection responsibility of the SEC has now been enhanced.”
Backstory
Nairametrics recently reported that President Bola Ahmed Tinubu had signed into law the Investment and Securities Act (ISA) 2025, marking a major milestone in Nigeria’s capital market reform.
- The new legislation, which repeals the former Investments and Securities Act No. 29 of 2007, is aimed at strengthening the legal and regulatory framework for investments and capital market activities in the country.
- The enactment of the ISA 2025, according to the SEC, reaffirms its authority as the apex regulator of Nigeria’s capital markets and introduces significant reforms designed to align local operations with international best practices.
- One of the major achievements of the ISA 2025 is the expansion of SEC’s regulatory powers to meet the standards of global bodies such as the International Organization of Securities Commissions (IOSCO).
