SEC Unleashes New USSD Code To Crush Ponzi Scams Across Nigeria!

In a decisive move to combat the surge of Ponzi schemes and unlicensed investment operations in Nigeria, the Securities and Exchange Commission (SEC) has unveiled a new USSD code system designed to help Nigerians verify the authenticity of capital market operators using their mobile phones

Speaking over the weekend in Abuja, SEC Director-General, Dr. Emomotimi Agama, explained that the USSD-based verification system will allow Nigerians to confirm whether an individual or company is duly registered with the SEC — even without internet access.

He noted that the innovation is part of a larger regulatory overhaul to sanitize the financial space and safeguard the investing public from scams.

“We’re introducing this code to empower everyday Nigerians. If anyone approaches you with investment offers, you can simply check their status using the code before making any commitments,” Agama said.

According to iReporter Online, this new tool is set to officially launch at the next Capital Market Committee Meeting, marking a milestone in investor protection efforts.

Agama emphasized that mere registration with the Corporate Affairs Commission (CAC) is not a license to operate investment services. “The first thing anyone should ask an investment promoter is whether they are registered with the SEC,” he warned. “We have licensed brokers, accountants, and legal advisers who are authorized to handle public investments.”

As reported by iReporter Online, the SEC boss further disclosed that new measures under the recently signed Investment and Securities Act (ISA) 2025 now impose severe penalties on promoters of unregistered schemes, with fines ranging from ₦20 million up to ₦1 billion, and jail terms of up to 10 years. These schemes, now officially classified as “prohibited schemes,” also expose celebrity influencers and online promoters to criminal liability.

“We now have powers to go after influencers and celebrities who use their platforms to promote Ponzi schemes. If they lure people into fraudulent investments, they will be prosecuted,” Agama declared.

In collaboration with the Nigerian Educational Research and Development Council, the SEC is also taking financial literacy to schools through curriculum development and gamified learning models.

Agama concluded by urging the public to verify all investment opportunities via the SEC’s official website or direct inquiry channels and warned against any venture promising “guaranteed” or exaggerated returns. He reaffirmed the Commission’s unwavering commitment to investor protection, financial education, and market transparency — according to iReporter Online.

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