The Securities and Exchange Commission (SEC) has announced plans to launch a USSD code system that will enable Nigerians to verify the authenticity of capital market operators using basic mobile phones.
The Director General of SEC, Dr Emomotimi Agama, disclosed this development in Abuja over the weekend, stating that the code will be introduced during the next Capital Market Committee meeting this quarter.
“We are introducing a code system that will allow mobile phone users to confirm a capital market operator’s status using USSD codes. No internet connection is required, meaning any Nigerian with a mobile phone can verify who they are dealing with,” Agama said.
“If anyone approaches you claiming what they are not, all you need to do is check with the code to confirm their registration status.”
Agama noted that the initiative forms part of a broader effort to rid the market of unregistered and illegal operators, many of whom are responsible for the growing prevalence of Ponzi and prohibited investment schemes in the country.
He clarified that registration with the Corporate Affairs Commission does not automatically permit a firm to engage in investment activities. Only entities registered with SEC are legally authorised to operate as investment advisers or capital market operators.
As part of its investor education strategy, the Commission is collaborating with the Nigerian Educational Research and Development Council to incorporate capital market literacy into school curricula and develop financial education games.
Agama further stated that the recently signed Investment and Securities Act (ISA) 2025 carries strict penalties for promoters of Ponzi and other prohibited schemes.
“If anyone is caught, they face a fine starting from N20 million, rising to as much as N1 billion, along with a 10-year prison term. We now have the powers to hold influencers and celebrities accountable if they promote these illegal investments,” he said.
The SEC advised Nigerians to avoid schemes that promise guaranteed or unrealistic returns and encouraged investors to always verify firms and products via the Commission’s website or official contact lines.
“The SEC is taking every measure to ensure Nigerians have accurate information to make informed financial decisions,” Agama added.