By 
The Securities and Exchange Commission (SEC) of Nigeria is introducing a dedicated USSD code system designed to help investors verify the authenticity of individuals and entities offering investment services—without the need for internet access.
The initiative, part of the SEC’s broader strategy to curb unregulated investment schemes, aims to empower Nigerians—especially those in underserved regions—with real-time access to vital verification tools. The system allows users with any mobile phone to confirm whether a firm or individual is officially registered to operate in the capital market.
Speaking on the development, SEC Director-General Dr. Emomotimi Agama highlighted the increasing threat of fraudulent schemes and Ponzi operations that have caused widespread financial losses. He emphasized that the new USSD system will serve as a frontline defense, enabling instant checks on the registration status of investment operators.
“With this tool, any Nigerian can immediately confirm whether someone offering an investment is registered with the SEC—just by using a mobile phone,” Agama stated. “You don’t need data or a smartphone; simply dial the code to protect your finances.”
The USSD code is set to be officially launched at the upcoming Capital Market Committee (CMC) meeting this quarter. Agama urged the public to invest only in SEC-regulated platforms, such as public offers and collective investment schemes, which offer structured, legal pathways to wealth-building.
He further noted that registration with the Corporate Affairs Commission (CAC) alone does not authorize a firm to operate in the capital market. “Only operators duly licensed by the SEC—such as stockbrokers, investment advisers, accountants, and solicitors—are legally permitted to provide these services,” he clarified.
The Director-General also cited the newly enacted Investments and Securities Act (ISA) 2025, which grants the SEC unprecedented powers to clamp down on Ponzi schemes. Under the new law, violators could face fines of up to ₦1 billion or prison terms of up to 10 years. Notably, the law also holds promoters—including influencers and celebrities—liable for marketing unregistered or fraudulent schemes.
“This marks Nigeria’s strongest legislative action yet against investment fraud,” Agama declared. “With ISA 2025, we can now take decisive action not just against perpetrators, but also their enablers.”
The Commission is also collaborating with other regulatory bodies and stakeholders to expand financial literacy and awareness. In partnership with the Nigerian Educational Research and Development Council, the SEC is integrating capital market education into school curricula and deploying gamified learning tools to enhance public understanding.
Agama reiterated the Commission’s call for vigilance, urging the public to avoid schemes promising unrealistic returns. He encouraged Nigerians to verify any investment offers by visiting the SEC’s website or using official contact channels.
“The SEC remains committed to safeguarding investors, promoting market integrity, and ensuring that Nigerians can grow wealth safely and confidently. With the launch of the USSD code and the support of ISA 2025, we are better equipped than ever to protect the financial interests of the public,” he concluded.
Comments