The recently signed Investments and Securities Act (ISA) 2025 has enhanced the investigative powers of the Securities and Exchange Commission (SEC) with the authority to access user data from telecom and electronic communication companies.
Section 3(4)(j) of the ISA 2025 empowers the SEC to obtain subscriber records from internet service providers, telephone companies, and other electronic communication providers operating in Nigeria. This access includes subscriber identities, payment details, and, when necessary, the content of communications related to actual or suspected violations of securities laws, codes, and regulations.
This measure will no doubt facilitate the SEC’s investigative and enforcement processes by allowing it to procure phone, internet, and electronic records pertinent to its regulatory functions.
According to Mr. Emomotimi Agama, the ISA 2025 introduces stringent measures to combat Ponzi schemes and other unlawful investment operations in the country. Operators of such schemes now face severe penalties, including imprisonment of up to 10 years and fines reaching ₦40 million. Prior to this Act, the SEC lacked the legal authority to prosecute promoters of Ponzi schemes effectively, hindering efforts to protect investors from fraudulent activities. The new law thereby equips the Commission with the necessary tools to prosecute these operators.
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Beyond enhancing investigative powers, the ISA 2025 reaffirms the SEC’s position as the apex regulatory authority of the Nigerian capital market. The Act aligns Nigeria’s market operations with international best practices, strengthening the legal framework to promote market integrity, transparency, and sustainable growth. These reforms are anticipated to boost the confidence of investors and contribute to the development of a more robust financial system.
