In a bold move to clamp down on unregistered investment operators and Ponzi scheme promoters, the Securities and Exchange Commission (SEC) has announced plans to introduce an Unstructured Supplementary Service Data (USSD) code to enable Nigerians verify the registration status of capital market operators.
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The Director General of the SEC, Dr. Emomotimi Agama, disclosed this in Abuja over the weekend during an interview, saying the innovation is part of the Commission’s broader agenda to safeguard investors and deepen public trust in the Nigerian capital market.
According to Agama, the USSD code will be officially launched during the next Capital Market Committee Meeting scheduled for this quarter. The service will allow any mobile phone user without internet access to verify whether a person or company is duly registered with the SEC to offer investment services.
“If anyone comes to you claiming what they are not, all you need to do is check the code to know the status of their registration,” Agama said. “This tool will empower ordinary Nigerians to verify operators in real time and avoid falling victim to fraudulent schemes.”
The SEC DG further stressed that the Commission is intensifying efforts to curb the spread of unregistered and illegal investment schemes, which have continued to exploit unsuspecting Nigerians.
He noted that the recently signed Investments and Securities Act (ISA) 2025 by President Bola Tinubu specifically targets Ponzi schemes and other financial crimes, empowering the SEC with stronger enforcement capabilities. The Act prescribes stiff penalties, including fines ranging from ₦20 million to ₦1 billion and up to 10 years imprisonment for promoters of such schemes.
“There is no law in Nigeria that has taken such strict sanctions on Ponzi schemes and their promoters,” Agama said, praising the President for signing the Act into law within a week of its passage. “We now have the power to go after influencers and celebrities who promote these scams.”
Reiterating the Commission’s commitment to investor protection and market development, Agama emphasized that registration with the Corporate Affairs Commission (CAC) does not qualify a company to offer investment services. Only entities registered and licensed by the SEC are authorized to operate in the capital market space.
He encouraged Nigerians to perform due diligence before making any financial commitment and to verify the registration status of any investment provider via the SEC website or official communication channels.
In a bid to promote financial literacy, Agama also revealed ongoing collaborations with the Nigerian Educational Research and Development Council (NERDC) to integrate capital market education into school curricula. In addition, the Commission is exploring the use of gamified learning tools and partnerships with other government agencies to educate the public on legitimate investment opportunities.
“The essence of regulation for us at the SEC is wealth redistribution,” he stated. “We are committed to helping people make money through legitimate means like public offerings, Collective Investment Schemes, and other structured products.”
Agama concluded by warning the public to steer clear of schemes promising exaggerated or guaranteed returns, noting that such ventures are not only unregistered but also offer no investor protection under Nigerian law.
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