SEC unveils USSD Code to tackle Ponzi Schemes and Verify Registered Investment Platforms

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The Securities and Exchange Commission (SEC) is set to launch a new Unstructured Supplementary Service Data (USSD) code system that will enable investors to verify whether a firm or individual is authorized to offer investment products and services. The system, which does not require internet access, is part of the Commission’s efforts to tackle the rise in unregulated investment schemes, including Ponzi operations.

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“With this system, Nigerians don’t need internet access. Anyone with a mobile phone can instantly verify whether someone is a registered capital market operator,” said SEC Director-General, Dr. Emomotimi Agama. “If someone approaches you with an investment offer, just dial the code to confirm their status.”

The USSD code system is designed to make verification processes more accessible, particularly for Nigerians in areas with limited internet access. The Commission is also working to introduce capital market education in schools and provide financial literacy through interactive tools

Agama cautioned that registration with the Corporate Affairs Commission (CAC) alone does not authorize an entity to carry out investment activities. “Only those duly registered with the SEC are permitted to operate in the capital market,” he said.

The newly signed Investments and Securities Act (ISA) 2025 gives the SEC unprecedented enforcement powers against operators of Ponzi and other prohibited schemes. “This is the strongest stance Nigeria has ever taken against Ponzi schemes,” Agama said, noting that the law imposes fines of up to N1 billion and prison terms of up to 10 years for promoters of such schemes.

The SEC is committed to building a transparent and trustworthy capital market that supports economic growth and gives investors confidence to participate in wealth-building opportunities. “The SEC remains resolute in its mandate to protect investors, promote fair practices, and strengthen public trust in Nigeria’s capital market,” Agama said

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