In a major step to curb fraudulent investment schemes and protect Nigerian investors, the Securities and Exchange Commission (SEC) has announced plans to launch a USSD code system that will enable Nigerians verify the authenticity of capital market operators using basic mobile phones.
The Director General of SEC, Dr. Emomotimi Agama, disclosed the development in Abuja over the weekend, saying the code will be unveiled during the next Capital Market Committee meeting this quarter.
“We are introducing the code system that will allow mobile phone users to verify a capital market operator using USSD codes. They do not require internet connection to be able to do this, which means any Nigerian with a mobile phone can verify who they’re dealing with,” Agama said. “If anyone comes to you claiming what they are not, all you need to do is check with the code to know their registration status.”
The SEC boss emphasized that the initiative is part of a broader push to rid the market of unregistered and illegal operators, many of whom are behind the rising cases of Ponzi and prohibited investment schemes in the country.
Agama further explained that registration with the Corporate Affairs Commission does not automatically qualify a firm to engage in investment activities. Only entities registered by SEC can legally act as investment advisers or capital market operators.
As part of its investor education drive, the Commission is also working with the Nigerian Educational Research and Development Council to incorporate capital market literacy into school curricula and develop financial education games.
Agama stressed that the recently signed Investment and Securities Act (ISA) 2025 contains tough penalties for promoters of Ponzi and other prohibited schemes. “If anyone is caught, they are to pay a fine starting from N20 million and it can go up to N1 billion, with a 10-year jail term. We now have powers to deal with influencers and celebrities who promote these illegal investments,” he said.
The SEC urged Nigerians to stop patronizing schemes that offer guaranteed or exaggerated returns and advised investors to always verify firms and products via the Commission’s website or official contact lines.
“The SEC is leaving no stone unturned to ensure Nigerians have the right information to make informed financial decisions,” Agama said.
