Ponzi Schemes: SEC introduces USSD codes to verify operators

As part of moves to combat unregistered operators and stem the tide of Ponzi scheme activities in Nigeria, the Securities and Exchange Commission is set to introduce an Unstructured Supplementary Service Data (USSD) code for verification of capital market operators. The Director General of the SEC, Dr. Emomotimi Agama who disclosed this in an interview […]

As part of moves to combat unregistered operators and stem the tide of Ponzi scheme activities in Nigeria, the Securities and Exchange Commission is set to introduce an Unstructured Supplementary Service Data (USSD) code for verification of capital market operators.

The Director General of the SEC, Dr. Emomotimi Agama who disclosed this in an interview said the code would be unveiled at the next Capital Market Committee Meeting scheduled for this quarter.

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“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 internet connection to be able to do this, which means any Nigerians that has a mobile phone will be able to perform this function. 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. That will be launched at the next Capital Market Committee Meeting,” he said.

Agama disclosed that the Commission is putting all hands on deck to deal with the malaise of unregistered and prohibited operators and schemes because it has a national responsibility to educate people, to develop the market and to get people to understand that wealth can be made legitimately via legitimate means.