The Securities and Exchange Commission (SEC) is set to roll out a new Unstructured Supplementary Service Data (USSD) code to help Nigerians verify the registration status of capital market operators.
This is part of efforts to clamp down on unregistered investment platforms and Ponzi schemes.
The Director General of the SEC, Dr. Emomotimi Agama, disclosed this in Abuja during an interview. He said the code will be officially launched at the next Capital Market Committee Meeting scheduled for this quarter.
“We are introducing the code system that will allow mobile phone users to verify a capital market operator using USSD codes,” Agama said. “They do not require internet connection to be able to do this, which means any Nigerian that has a mobile phone will be able to perform this function.”
He added that the system will empower citizens to instantly confirm whether someone offering investment advice is registered with the SEC.
“If anyone comes to you claiming what they are not, all you need to do is check with the code to know the status of their registration,” he said.
The initiative is designed to protect investors, especially those in rural areas with limited internet access, from falling victim to fraudulent schemes.
🛡️ New Law Targets Ponzi Promoters
Agama also referenced the newly signed Investment and Securities Act (ISA) 2025, which introduces stiff penalties for operators and promoters of Ponzi schemes—now officially classified as “prohibited schemes.”
Offenders face fines ranging from ₦20 million to ₦1 billion and up to 10 years in prison.
The law also empowers the SEC to prosecute celebrities and influencers who promote unregistered investment schemes. “We now have power to deal with influencers and celebrities that bring these up in the air and promote these Ponzi scheme operators,” Agama warned.
He stressed that registration with the Corporate Affairs Commission (CAC) alone does not qualify any entity to offer investment services. Only firms registered with the SEC are authorised to operate in Nigeria’s capital market.
“The first thing you ask anyone that comes to speak to you on money matters—ask them about their registration with the SEC,” he said.
The Commission is also working with the Nigerian Educational Research and Development Council to introduce capital market education into school curricula and develop financial literacy games for young learners.
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