The Nigeria Deposit Insurance Corporation (NDIC) has cautioned Nigerians against investing in Ponzi schemes and other fraudulent investment platforms, emphasizing that such investments are not covered by deposit insurance. NDIC Managing Director, Mr. Thompson Sunday, issued this warning at the Corporation’s special day at the 20th Abuja International Trade Fair, organized by the Abuja Chamber of Commerce and Industry (ACCI).
Mr. Sunday, represented by the Director of the Performance Management Department, Bimpe Akande, advised Nigerians to only save their funds in banks licensed by the Central Bank of Nigeria (CBN), which are protected by deposit insurance provided by the NDIC. He stressed the importance of vigilance against Ponzi schemes and other fraudulent investment platforms to safeguard hard-earned savings.
The NDIC is committed to protecting Nigerian banks in collaboration with the CBN, striving to maintain stability in the banking sector, enforce compliance with banking regulations, and exercise effective oversight over insured deposit-taking institutions. The Corporation’s mission is to promote financial inclusion and stability by reassuring Nigerians of the security of their savings.
Deposit insurance coverage has been enhanced, with depositors in Deposit Money Banks, Mobile Money Operators, and Non-Interest Banks insured up to N5 million, while those in Payment Service Banks, Microfinance Banks, and Primary Mortgage Banks are protected for up to N2 million. This enhanced coverage ensures that approximately 98.98% of total depositors in DMBs, 99.27% in MFBs, 99.34% in PMBs, and 99.99% in PSBs are protected.
The ACCI President, Emeka Obegolu, noted the crucial role of the NDIC in safeguarding the country’s financial system, aligning with the theme of the fair, ‘Sustainability: Consumption, Incentives and Taxation’. He commended the NDIC for extending deposit insurance to cover various types of banks and financial institutions, providing stability for businesses, including Small and Medium Enterprises (SMEs), and facilitating their access to financial services.
The NDIC’s efforts to protect depositors and maintain financial stability are significant, particularly in the context of Nigeria’s financial landscape. As the Corporation continues to work with the CBN to regulate and oversee the banking sector, its warnings against fraudulent investment schemes serve as a reminder to Nigerians to prioritize caution and diligence in their financial decisions.
