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 that will enable Nigerians to verify the registration status of capital market operators.
The Director General of the SEC, Dr. Emomotimi Agama, disclosed this over the weekend during an interview in Abuja. He said the innovation is part of the Commission’s broader efforts to protect investors and build public trust in Nigeria’s 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—even without internet access—to confirm 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 explained. “This tool will empower ordinary Nigerians to verify operators in real time and avoid falling victim to fraudulent schemes.”
He emphasized that the Commission is ramping up efforts to curb the proliferation of unregistered and illegal investment schemes, which have continued to exploit unsuspecting Nigerians.
Agama also highlighted the recently signed Investments and Securities Act (ISA) 2025 by President Bola Tinubu, which specifically targets Ponzi schemes and other financial crimes. The Act grants the SEC enhanced enforcement powers and prescribes strict 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,” he noted, applauding 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.”
Reaffirming the Commission’s commitment to investor protection and capital market development, Agama stressed that registration with the Corporate Affairs Commission (CAC) does not authorize a company to offer investment services. Only entities registered and licensed by the SEC are legally permitted to operate in the capital market.
He urged Nigerians to carry out proper due diligence before committing their funds and to verify the registration status of any investment provider through the SEC’s website or official communication channels.
As part of efforts to promote financial literacy, Agama also revealed that the Commission is working with the Nigerian Educational Research and Development Council (NERDC) to integrate capital market education into school curricula. In addition, the SEC is exploring the use of gamified learning tools and forming partnerships with other government agencies to educate the public about legitimate investment opportunities.
“The essence of regulation for us at the SEC is wealth redistribution,” Agama said. “We are committed to helping people make money through legitimate means like public offerings, Collective Investment Schemes, and other structured products.”
He concluded by warning the public to avoid schemes that promise exaggerated or guaranteed returns, stressing that such ventures are not only unregistered but also offer no investor protection under Nigerian law.
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