New USSD Code to Check If an Investment is Fake

A new USSD code will soon help Nigerians check if an investment is real or fake, no internet needed.

The Securities and Exchange Commission (SEC), Nigeria’s top capital market regulator, is introducing this simple tool to fight fake investment schemes that have made many people lose money.

How it works

Using the new USSD code, anyone with a mobile phone can find out if a company or person is officially allowed to offer investments. You don’t need a smartphone or internet, just dial the code, and you’ll get a quick answer.

Dr. Emomotimi Agama, Director-General of the SEC, said the code is part of a bigger plan to stop fraud and help Nigerians make safe investment choices. 

He explained that the system is designed for everyone, especially people in places with poor internet service.

“If someone offers you an investment, dial the code first to check if they are registered with SEC,” he said.

Why this matters

Many people in Nigeria have been victims of Ponzi schemes and fake investments. These scams often promise quick and huge returns but end up stealing people’s savings. The SEC hopes that with this code, people will be more careful before handing over their money.

Agama said only companies and people registered with the SEC are allowed to offer investment services. Being registered with the Corporate Affairs Commission (CAC) is not enough.

“We have licensed professionals like stockbrokers and investment advisers. Always ask if someone is registered with SEC before you invest,” he warned.

Stronger laws to fight fraud

The new Investments and Securities Act 2025 gives the SEC more power to deal with scammers. It includes,

• Fines up to N1 billion
  
• Jail time up to 10 years
  
• Punishment for influencers or celebrities who promote fake investments
  

“This is the strongest move Nigeria has made against Ponzi schemes,” Agama said.

How the SEC plans to educate the public

The SEC also plans to teach people more about the capital market. This includes adding financial education in schools and using games to explain how investing works. The goal is to help Nigerians grow their money in safe and legal ways.

Agama advised people to focus on proper investments like public offerings and SEC-approved funds. He also reminded the public to always visit the SEC website or contact the agency to confirm if an investment is real.

“With this new code and stronger laws, we are ready to stop fake investments and protect Nigerians,” he said.