In a major move to tackle the growing problem of Ponzi schemes and fake investment platforms, the Securities and Exchange Commission (SEC) is set to roll out a USSD code that will allow Nigerians to easily verify the legitimacy of investment operators using just their mobile phones — no internet required.

The announcement was made by Dr. Emomotimi Agama, the SEC’s Director-General, during an interview in Abuja. He explained that the USSD system is part of broader reforms to clean up Nigeria’s capital market and protect everyday citizens from financial fraud.

“If anyone comes to you claiming to be an investment operator, all you need to do is use the code to check if they’re registered. It’s that simple,” Agama said.

The new code will officially launch at the next Capital Market Committee Meeting and is expected to make it much harder for fake operators to deceive people.

For years, many Nigerians have lost their life savings to Ponzi schemes disguised as real investments. These frauds often make big promises of “guaranteed” returns but end up disappearing with investors’ money.

To help fight this, the SEC is also:

Educating the public about safe and legal investment options like public offerings and mutual funds.

Working with schools to teach financial literacy to young Nigerians.

Introducing educational games to help people understand how investments work.

⚠️ SEC Issues Strong Warning: “CAC Registration Is Not Enough”

Dr. Agama also warned Nigerians not to fall for flashy business names or people who claim to be legit just because they’re registered with the Corporate Affairs Commission (CAC).

“Only firms registered with the SEC are legally allowed to offer investment services,” he stressed.

Thanks to the new Investment and Securities Act 2025, anyone caught running or promoting a Ponzi scheme now faces:

A fine of ₦20 million to ₦1 billion

Up to 10 years in prison

The law also gives the SEC the power to prosecute celebrities and influencers who promote fraudulent schemes online or offline.

“We now have the authority to go after influencers who use their platforms to push Ponzi schemes,” Agama warned.

 

Before giving anyone your money:

Check their registration on the SEC website or soon via the new USSD code.

Avoid any scheme promising unrealistic returns. If it sounds too good to be true — it probably is.

Contact the SEC if you’re unsure or need advice.

The SEC says it’s fully committed to protecting investors and restoring trust in Nigeria’s capital market.

“Our job is to make sure people can invest safely and confidently,” Dr. Agama said. “We’re not backing down.”

This new USSD code might be a simple tool — but it could be a powerful weapon in the fight against fraud.