The Securities and Exchange Commission has announced plans to launch an Unstructured Supplementary Service Data code that will enable Nigerians to verify the authenticity of capital market operators in a renewed effort to combat unregistered investment operators and clamp down on Ponzi scheme activities.
In a statement on Sunday, the Director-General of the SEC, Emomotimi Agama, disclosed this over the weekend in Abuja, stating that the code will be officially launched at the next Capital Market Committee meeting scheduled to be held this quarter.
“We are introducing the code system that will allow mobile phone users to verify a capital market operator using USSD codes. They do not require an internet connection to be able to do this, which means any Nigerian with a mobile phone will be able to perform this function,” Agama said.
“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,” he added.
The Commission said it is intensifying efforts to address the proliferation of unregistered operators and illegal investment schemes.
According to Agama, this is part of its national responsibility to protect investors, drive financial literacy, and promote legitimate wealth creation avenues.
“The essence of regulation for us at the SEC is wealth redistribution, and how do we do that? We sensitise people that they can actually make money through legitimate processes like public offerings, collective investment schemes, and other structured products,” he explained.
Agama also revealed ongoing partnerships with the Nigerian Educational Research and Development Council to embed capital market education from the foundational level. Additionally, the Commission is working with consultants to design financial literacy games and collaborating with other institutions and government agencies for broader investor education.
He stressed that mere registration with the Corporate Affairs Commission does not authorise any entity to act as an investment company. Only firms registered with the SEC can legally engage in such activities.
“The first thing you should ask anyone discussing money matters with you is whether they are registered with the SEC. We have stockbrokers, registered accountants, solicitors, and sponsored individuals duly recognised to provide investment advice,” he said, noting that investor inclusion remains the ultimate goal.
Speaking further, Agama highlighted that the recently signed Investment and Securities Act 2025 has introduced stiffer penalties for Ponzi schemes, now referred to as “prohibited schemes.”
“In that Act, if anyone is caught, they are to pay N20m in the first instance, and it can go up to as much as N1bn. They will also face 10 years imprisonment. There is no law in Nigeria that has imposed such stringent sanctions on Ponzi scheme promoters,” he stated.
He added that the Commission now has powers to take legal action against social media influencers and celebrities who promote such schemes.
“The SEC is leaving no stone unturned in ensuring that Nigerians have the right information to make wise investment decisions,” he said.
Agama reiterated the Commission’s earlier warnings to the public to steer clear of Ponzi or unregistered investment schemes that promise guaranteed or unrealistic returns. He urged investors to always verify the registration status of investment firms or products via the SEC website or its official communication channels.
“The Commission remains committed to its mandate of protecting investors, ensuring fair practices, and maintaining confidence in Nigeria’s capital market,” he said.
