Nigeria’s Investment and Securities Act (ISA 2025) has introduced a major shift in the country’s financial regulatory landscape, granting the Securities and Exchange Commission (SEC) the authority to access user data from telecom and electronic communication firms.
This new provision, outlined in Section 3(4)(j) of the Act, enables the Commission to obtain subscriber records, payment details, and even the content of communications in cases involving violations of securities laws. Officials say this move will strengthen the SEC’s investigative and enforcement capabilities.
Crackdown on Ponzi Schemes
One of the most significant aspects of the law is its focus on combating Ponzi schemes, a persistent issue in Nigeria’s financial sector. Speaking in a TV interview, SEC Director-General Emomotimi Agama revealed that the Commission now has the legal backing to prosecute fraudulent investment operators.
“Before now, we had no legal power to bring Ponzi scheme operators to justice. This law changes that,” Agama stated. Under the new framework, anyone caught running a Ponzi scheme could face a 10-year prison sentence and a ₦40 million fine.
With this legal reinforcement, Agama expressed confidence that the SEC could now “get the bad guys out of the way” and restore investor confidence in Nigeria’s financial markets. He believes the stronger enforcement mechanisms will protect investors and encourage safer participation in the economy.
While the Act aims to enhance financial security, concerns are growing over its potential privacy implications. Granting the SEC access to private phone and internet records raises questions about data protection and regulatory overreach.
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