By David Akinmola
In a renewed effort to curb the rising menace of Ponzi schemes and protect investors from fraudulent financial operations, the Securities and Exchange Commission (SEC) has announced plans to launch a dedicated USSD code for public use.
The initiative, which is expected to go live in the coming weeks, will allow Nigerians to instantly verify the registration status of investment companies and schemes using their mobile phones, without the need for internet access.
Speaking at a media briefing in Abuja, Director-General of the SEC, Dr. Emomotimi Agama, said the commission is leveraging simple technology to empower ordinary Nigerians to identify and avoid illegal investment platforms.
“The introduction of a USSD code is a major step in bringing investor protection to the grassroots. It allows anyone with a basic phone to confirm whether a company is registered with the SEC and whether an investment offer is legitimate,” Agama stated.
Curbing Financial Fraud
Ponzi schemes have continued to thrive in Nigeria, often disguised as legitimate investment opportunities promising high returns with little or no risk. Many victims are lured in by social media campaigns or word of mouth, only to lose their life savings when the schemes inevitably collapse.
According to SEC data, the number of reported fraudulent investment cases has spiked in recent years, with billions of naira lost to unregistered entities operating outside regulatory oversight.
Agama noted that while public awareness campaigns have helped, a more practical tool was needed to put the power of verification directly into the hands of potential investors.
How It Will Work
The USSD code, once launched, will function similarly to mobile banking codes. Users will dial a designated number, follow prompts, and enter the name or registration number of an investment company. The system will then return a real-time response confirming whether the company is licensed by the SEC or flagged as suspicious.
The commission is working closely with mobile network operators and financial regulators to ensure seamless integration and nationwide accessibility, even in rural areas.
Public Awareness Key to Success
SEC officials say the USSD initiative will be supported by an aggressive public education campaign across radio, TV, social media, and community outreach programs. The goal is to ensure that citizens, especially those in underserved regions, are informed and equipped to make safer financial decisions.
“We are taking the fight against Ponzi schemes to every phone screen in Nigeria. No one should be scammed again due to lack of access to information,” Agama added.
Looking Ahead
The USSD project is part of a broader SEC strategy to modernize investor protection mechanisms and strengthen regulatory enforcement. The commission has also hinted at increased collaboration with law enforcement agencies and the judiciary to fast-track the prosecution of financial fraud cases.
As Nigerians continue to seek alternative income streams in a challenging economy, the SEC is urging the public to “verify before they invest” and report any suspicious schemes through its helpline or new digital channels.
With the launch of this innovative tool, the SEC hopes to drastically reduce the spread of illegal investment platforms and restore public trust in the regulated financial system.
