The Securities and Exchange Commission (SEC), Nigeria’s top capital market regulator, has announced plans to launch a new Unstructured Supplementary Service Data (USSD) code to help Nigerians verify the registration status of any individual or company offering investment services. The initiative is aimed at tackling the rising number of fraudulent investment schemes and Ponzi operations that have caused massive financial losses across the country.
This announcement was made by the Director-General of the SEC, Dr. Emomotimi Agama, who said the USSD code is designed to work on all types of mobile phones and does not require internet access. This feature is particularly important for millions of Nigerians living in areas with limited or no internet connectivity. With this system, anyone can easily check if an investment promoter or company is licensed by the SEC before committing their money.
Dr. Agama explained that the Commission is intensifying efforts to root out unregulated and illegal investment schemes. He said that the USSD code will be formally introduced during the next Capital Market Committee (CMC) meeting scheduled to hold later this quarter. “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. If someone approaches you with an investment offer, just dial the code to confirm their status,” Agama stated.
The SEC boss urged Nigerians to only participate in structured and regulated investment opportunities, such as public offerings and collective investment schemes, which are monitored by the Commission to ensure investor protection and fair returns. He emphasized that registering a company with the Corporate Affairs Commission (CAC) does not grant the right to offer investment services. Only those registered with the SEC are authorized to operate in Nigeria’s capital market.
Agama also revealed that the newly signed Investments and Securities Act (ISA) 2025 has provided the Commission with unprecedented enforcement powers to deal with operators of Ponzi and other illegal schemes. The law prescribes fines of up to N1 billion and prison sentences of up to 10 years for those found guilty of promoting fraudulent investment schemes. Notably, the law also holds social media influencers, celebrities, and advertisers accountable if they promote unregistered or deceitful investments.
He described the ISA 2025 as the strongest legal stance Nigeria has ever taken against Ponzi schemes and related fraudulent operations. “Under ISA 2025, the SEC now has the authority to go after not just the scheme operators, but also those who promote them—whether through social media, advertising, or endorsements,” Agama said.
In addition to the new code, the SEC is collaborating with other government agencies and private institutions to raise public awareness about the risks of unregulated investments. The Commission is also working with the Nigerian Educational Research and Development Council to incorporate capital market education in schools. Plans are underway to use financial literacy games and interactive tools to educate young Nigerians on safe investment practices from an early stage.
The SEC has repeatedly warned the public to avoid any investment schemes that promise unrealistic returns, noting that such offers are often signs of fraud. Agama advised that the first step before investing should be to confirm whether the investment company or promoter is registered with the SEC. This can be done by using the upcoming USSD code, visiting the SEC website, or reaching out to the Commission through its official contact channels.
Agama reiterated the SEC’s commitment to protecting investors and maintaining a transparent, fair, and trustworthy capital market that contributes to Nigeria’s economic growth. “The SEC remains resolute in its mandate to protect investors, promote fair practices, and strengthen public trust in Nigeria’s capital market. With these new tools and laws, we are more prepared than ever to confront the threat of Ponzi schemes and ensure financial safety for Nigerians,” he said.
The USSD initiative follows similar digital efforts by other agencies like the Federal Inland Revenue Service (FIRS), which recently launched its own USSD code to simplify taxpayer services. These measures reflect the government’s broader push to improve transparency and digital access to essential services in Nigeria.
