The recently enacted Investment and Securities Act (ISA 2025) in Nigeria grants the Securities and Exchange Commission (SEC) authority to request customer data from telecommunications and electronic communications firms within the country as part of enforcing this legislation.

Additionally, Section 3(4)(j) of the Act permits the SEC to examine the substance of communications if there is any breach of legal provisions.

The aim of this new clause is to grant the Commission authority to access telephone, internet, and electronic data records, thereby significantly streamlining its investigative and enforcement capabilities.

Emomotimi Agama, the Director-General of the Securities and Exchange Commission, stated that the newly enacted Investment and Securities Act (ISA 2025), which was recently signed by President Bola Ahmed Tinubu, grants the SEC authority to pursue individuals involved in Ponzi schemes. These perpetrators could face a minimum sentence of ten years in prison under this legislation.

Agama stated, “Under the new legislation, they could receive a prison sentence of up to 10 years.” Furthermore, he mentioned that individuals involved in running a Ponzi scheme in Nigeria would also be required to pay a fine of N40 million as per this law.

On Tuesday, during an interview with Arise TV, the SEC DG mentioned that previously, the commission lacked the necessary legal framework to take action against perpetrators of Ponzi schemes. This deficiency made it challenging to hold these individuals accountable. However, he highlighted that the introduction of the new ISA has addressed this issue.

“The SEC will possess the authority to acquire subscriber information kept or managed by Internet service providers, telecommunications companies, and other electronic communications services based in Nigeria. This includes data identifying subscribers, financial transactions, and pertinent details such as the contents of communications related to potential violations or breaches of this legislation or other securities laws, codes, and regulations,” the document specified.

For the first time, Nigeria has enacted new capital market regulations that categorize cryptocurrencies and other digital assets as securities. This move aims to enhance transparency and attract more investment.

President Bola Tinubu has recently approved the new Investments and Securities Act (ISA) 2024, replacing the previous Investments and Securities Act No. 29 from 2007.

The legislation clearly identifies virtual or digital assets and investment contracts as forms of securities, thereby bringing Virtual Asset Service Providers (VASPs), Digital Asset Operators (DAOPs), and Digital Asset Exchanges within the jurisdiction of the SEC for regulation purposes.

This indicates that companies involved in digital assets are required to register with the SEC and adhere to their regulations, which is an essential measure for reducing fraudulent practices within the digital realm and promoting both trust and advancement in blockchain technology.