SEC plans new USSD code to help Nigerians check fake investment platforms using mobile phones.
The move targets Ponzi schemes and boosts investor safety without needing internet access.
Nigeria’s Securities and Exchange Commission (SEC) is set to introduce a new USSD-based verification system aimed at curbing unregistered investment platforms and tackling the proliferation of Ponzi schemes across the country.
The innovation, which will be unveiled at the next Capital Market Committee (CMC) meeting this quarter, will enable Nigerians to verify the registration status of capital market operators directly from their mobile phones without requiring internet access.
Announcing the initiative over the weekend in Abuja, SEC Director-General Emomotimi Agama said the mobile-friendly tool is part of broader reforms aimed at sanitizing Nigeria’s financial space and protecting unsuspecting investors from fraudulent schemes.
“We are introducing a USSD system that allows Nigerians to verify capital market operators using just their mobile phones,” Agama stated. “You don’t need the internet. If someone claims to be a market operator, you can check using the code.”
Ponzi operations and fake investment platforms have become increasingly common in recent years, often promoted through social media with promises of unrealistic or guaranteed returns. These schemes target vulnerable segments of the population, leaving thousands defrauded.
To address this, the SEC is also collaborating with educational institutions to embed capital market literacy into school curricula and developing gamified tools to teach financial awareness from an early age.
“Regulation is not just about compliance; it’s about wealth redistribution,” Agama noted. “We are pushing to ensure Nigerians understand they can grow wealth through legitimate channels like public offerings and SEC-regulated schemes.”
He emphasised that registration with the Corporate Affairs Commission (CAC) does not qualify any firm to offer investment services. Only professionals and companies licensed by the SEC, such as stockbrokers, accountants, and solicitors, are authorized to advise or manage investments.
The newly signed Investment and Securities Act (ISA) 2025 strengthens the SEC enforcement authority, including the prosecution of individuals and social media influencers who promote illegal schemes. Under the law, penalties for offenders now range from ₦20 million to ₦1 billion, with jail terms of up to 10 years.
Signed earlier this year by President Bola Tinubu, the ISA 2025 signals a firm commitment by the federal government to protect investors and ensure financial market integrity.
Agama urged Nigerians to conduct due diligence before committing funds and to report suspicious offers to the SEC. “Our job is to ensure that investors have the tools and information they need to make safe and informed choices,” he said.
