As part of measures to curb the activities of unregistered investment operators and protecting investors from fraudulent schemes, the Securities and Exchange Commission (SEC) is set to introduce a dedicated Unstructured Supplementary Service Data (USSD) code system that will allow Nigerians to verify the registration status of capital market operators directly from their mobile phones.
The USSD initiative, which will be formally launched at the next Capital Market Committee (CMC) meeting this quarter, is aimed at making verification processes more accessible, particularly for Nigerians in areas with limited internet access.
The SEC said this move is part of a broader effort to tackle the rise in unregulated investment schemes, including Ponzi operations, that have led to widespread financial losses across the country.
Director General of the SEC, Dr. Emomotimi Agama, who announced the development at the weekend in Abuja, explained that the new system will enable mobile phone users to check the registration status of any individual or entity claiming to be an investment operator using a simple USSD code.
“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 said.
The SEC chief said the Commission is ramping up efforts to root out unregistered and illegal investment schemes, asserting that it bears a national responsibility to enlighten the public on how to build wealth through legitimate means within the regulatory framework of Nigeria’s capital market.
He urged Nigerians to participate in properly structured investment opportunities such as public offerings and Collective Investment Schemes, which are overseen by the SEC to ensure investor protection and fair returns.
“Inclusiveness and wealth redistribution are key goals for us. This can be achieved when people are educated and empowered to invest in secure and regulated platforms,” Agama stated. “We are working with the Nigerian Educational Research and Development Council to introduce capital market education at early stages in schools. Financial literacy through games and other interactive tools is also part of our long-term strategy.”
He 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.
“If someone claims they are offering investment services, the first thing to ask is whether they are registered with the SEC,” Agama said. “We have authorised professionals—stockbrokers, investment advisers, accountants, solicitors—who are properly registered to offer such services.”
Agama further explained that the newly signed Investments and Securities Act (ISA) 2025 gives the Commission unprecedented enforcement powers against operators of Ponzi and other prohibited schemes.
He pointed out that the law imposes fines of up to N1 billion and prison terms of up to 10 years for promoters of such schemes. It also extends liability to influencers and celebrities who promote unregistered or fraudulent investments.
“This is the strongest stance Nigeria has ever taken against Ponzi schemes,” he said. “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.”
