“Dial Before You Invest”: SEC to Launch USSD Code to Tackle Ponzi Schemes Across Nigeria
In a bold move to curb the rising tide of Ponzi schemes and illegal investment platforms in Nigeria, the Securities and Exchange Commission (SEC) has announced plans to launch a USSD code that will allow Nigerians to instantly verify the legitimacy of capital market operators—with or without internet access.
What’s New?
The upcoming USSD code system will enable anyone with a mobile phone to check if an individual or company is a registered capital market operator. No internet required.
“If anyone comes to you claiming what they are not, all you need to do is check with the code to know the status of their registration,” said Dr. Emomotimi Agama, Director-General of the SEC.
The official launch of this USSD verification tool is expected to take place at the next Capital Market Committee meeting this quarter.
Why This Matters:
• Ponzi schemes have flourished due to low awareness and ease of access through unregulated platforms.
• Many Nigerians fall victim to flashy investment pitches with “guaranteed returns.”
• The SEC is now actively cracking down on these illegal operators, some of whom disguise themselves with Corporate Affairs Commission (CAC) registrations—which are not sufficient for investment activities.
️ What SEC Is Doing to Protect You:
1. USSD Verification System
Easily check the registration status of any investment firm or individual with a simple code on your phone.
2. New Investment and Securities Act (2025)
Introduces strict penalties:
• ₦20 million fine (minimum)
• Up to ₦1 billion fine and/or
• 10 years in prison for Ponzi scheme operators
3. Social Media Crackdown
Influencers and celebrities who promote unregistered schemes are now liable under the new law.
4. Financial Literacy Boost
• Partnering with Nigerian Educational Research and Development Council to introduce capital market education in schools
• Working on interactive investment games
• Collaborating with other institutions to expand investor education
Key Advice from SEC:
• “Ask the right question first”: Are they registered with SEC?
• Being CAC-registered is not enough—only firms with SEC licenses can operate as investment advisers or collect money for investment.
• Always verify investment platforms via:
• SEC website: www.sec.gov.ng
• Upcoming USSD code
• Official SEC communication channels
Final Word from SEC:
“The Commission is leaving no stone unturned in ensuring that Nigerians have the right information to make wise investment decisions.”
In a bold move to curb the rising tide of Ponzi schemes and illegal investment platforms in Nigeria, the Securities and Exchange Commission (SEC) has announced plans to launch a USSD code that will allow Nigerians to instantly verify the legitimacy of capital market operators—with or without internet access.
What’s New?
The upcoming USSD code system will enable anyone with a mobile phone to check if an individual or company is a registered capital market operator. No internet required.
“If anyone comes to you claiming what they are not, all you need to do is check with the code to know the status of their registration,” said Dr. Emomotimi Agama, Director-General of the SEC.
The official launch of this USSD verification tool is expected to take place at the next Capital Market Committee meeting this quarter.
Why This Matters:
• Ponzi schemes have flourished due to low awareness and ease of access through unregulated platforms.
• Many Nigerians fall victim to flashy investment pitches with “guaranteed returns.”
• The SEC is now actively cracking down on these illegal operators, some of whom disguise themselves with Corporate Affairs Commission (CAC) registrations—which are not sufficient for investment activities.
️ What SEC Is Doing to Protect You:
1. USSD Verification System
Easily check the registration status of any investment firm or individual with a simple code on your phone.
2. New Investment and Securities Act (2025)
Introduces strict penalties:
• ₦20 million fine (minimum)
• Up to ₦1 billion fine and/or
• 10 years in prison for Ponzi scheme operators
3. Social Media Crackdown
Influencers and celebrities who promote unregistered schemes are now liable under the new law.
4. Financial Literacy Boost
• Partnering with Nigerian Educational Research and Development Council to introduce capital market education in schools
• Working on interactive investment games
• Collaborating with other institutions to expand investor education
Key Advice from SEC:
• “Ask the right question first”: Are they registered with SEC?
• Being CAC-registered is not enough—only firms with SEC licenses can operate as investment advisers or collect money for investment.
• Always verify investment platforms via:
• SEC website: www.sec.gov.ng
• Upcoming USSD code
• Official SEC communication channels
Final Word from SEC:
“The Commission is leaving no stone unturned in ensuring that Nigerians have the right information to make wise investment decisions.”