The Nigeria Deposit Insurance Corporation has warned Nigerians against investing in Ponzi schemes and other fraudulent investment platforms, noting that funds placed in such schemes are not protected by deposit insurance.
The NDIC Managing Director, Mr Thompson Sunday, gave the warning at the Corporation’s special day at the 20th Abuja International Trade Fair on Thursday, organised by the Abuja Chamber of Commerce and Industry, ACCI.
Mr Sunday, who was represented by the Director of the Performance Management Department, Bimpe Akande, urged Nigerians to ensure their funds are only saved in Central Bank of Nigeria-licensed banks.
He advised, “I would like to emphasise the importance for Nigerians to remain vigilant against Ponzi schemes and other fraudulent investment platforms. Always ensure your funds are placed only in Central Bank of Nigeria-licensed banks, all of which are covered by deposit insurance provided by the NDIC. This vigilance is crucial to protecting your hard-earned savings.
“We are dedicated to protecting Nigerian bank in collaboration with the CBN, we strive to maintain stability in the banking sector, enforce compliance with banking regulations, and exercise effective oversight over insured deposit-taking institutions.
“Our mission, embodied in the tagline ‘Protecting your bank deposits,’ is to promote financial inclusion and ability by reassuring Nigerians of the security of their savings.”
The NDIC boss again reiterated that depositors in Deposit Money Banks, Mobile Money Operators and Non-Interest Banks are insured up to N5 million, while those in Payment Service Banks, Microfinance Banks and Primary Mortgage Banks are protected for up to N2 million.
He said the enhanced coverage ensures that approximately 98.98 per cent of total depositors in DMBs, 99.27 per cent in MFBs, 99.34 per cent in PMBs, and 99.99 per cent in PSBs are protected.
Meanwhile, the ACCI President, Emeka Obegolu, in his address, noted the role of the NDIC in safeguarding the country’s financial system, saying the theme of the fair, ‘Sustainability: Consumption, Incentives and Taxation’, aptly aligns with the mandate of the NDIC.
He commended the NDIC for extending deposit insurance to cover not just deposit money banks but also microfinance banks, mortgage banks, non-interest banks, payment service banks and mobile money operators.
”The NDIC provides the stability required for businesses, including Small and Medium Enterprises, SMEs, which are represented by the ACCI, helping them to access financial services, thrive in operations, and expand into export markets,” he said.
The ACCI president was represented at the event by the Director-General of the Chamber, Agabaidu Jideani.
Avoid ponzi schemes, investment platforms not covered by CBN – NDIC warns Nigerians