Securities and Exchange Commission (SEC) is set to introduce a USSD Ponzi schemes and illegal investment activities in Nigeria.
Dr. Emomotimi Agama, director-general of the SEC, disclosed this in an interview in Abuja.
He said the verification code will be officially launched during the upcoming Capital Market Committee (CMC) meeting scheduled for this quarter.
“We are introducing a USSD system that allows mobile phone users to verify the status of any capital market operator. It doesn’t require internet access, meaning anyone with a mobile phone can check if someone is duly registered with the SEC,” Agama said.
He explained that the initiative aims to empower Nigerians to easily identify fake investment promoters.
“If anyone comes to you claiming to be a capital market operator, you can instantly verify their registration using the code,” he added.
Agama emphasized that the Commission is intensifying efforts to eliminate unregistered and prohibited schemes, adding that the SEC has a national responsibility to educate the public on legitimate wealth creation.
“The essence of our regulation is wealth redistribution through legitimate investment platforms like public offerings, Collective Investment Schemes, and other structured products regulated by the SEC,” he said.
He noted that the Commission is working with the Nigerian Educational Research and Development Council (NERDC) to introduce capital market education from an early age, including the use of games for financial learning.
The SEC is also partnering with other agencies to promote financial literacy and responsible investing.
Agama stressed that registration with the Corporate Affairs Commission (CAC) does not automatically authorize a company to offer investment services. Only firms registered with the SEC are legally permitted to operate in the capital market.
“The first question anyone should ask an investment promoter is whether they are registered with the SEC,” he said.
“We have licensed stockbrokers, accountants, solicitors, and agents called sponsored individuals who are authorized to give investment advice.”
He further highlighted the significance of the recently signed Investments and Securities Act (ISA) 2025, which classifies Ponzi and other fraudulent schemes as “prohibited,” with tougher penalties for violators.
“President Bola Tinubu signed the Act into law within one week, demonstrating his commitment to protecting Nigerians. Under the Act, violators will face a minimum fine of ₦20 million, which can go up to ₦1 billion, and a prison term of up to 10 years,” he said.
Agama also warned celebrities and influencers promoting Ponzi schemes that the SEC now has legal powers to prosecute them.
He reiterated the SEC’s warning to the public to avoid unregistered schemes promising unrealistic returns, stressing that such platforms are not regulated and do not offer investor protection.
Investors are encouraged to verify the registration status of any firm or product via the SEC’s website or by contacting the Commission directly.
Agama affirmed the SEC’s commitment to investor protection, fair practices, and restoring confidence in Nigeria’s capital market.
