The Nigeria Deposit Insurance Corporation (NDIC) has warned Nigerians against investing in Ponzi schemes and other fraudulent platforms, stressing that such investments are not covered by deposit insurance. The warning was delivered by NDIC Managing Director Thompson Sunday during the corporation’s special day at the 20th Abuja International Trade Fair, organized by the Abuja Chamber of Commerce and Industry (ACCI). Representing Mr. Sunday, Director of the Performance Management Department Bimpe Akande advised the public to keep their funds only in banks licensed by the Central Bank of Nigeria (CBN), which are protected by NDIC deposit insurance. She emphasized the need for vigilance to safeguard hard‑earned savings from fraudulent schemes.
The NDIC is committed to protecting Nigerian banks in collaboration with the CBN, aiming to maintain stability in the banking sector, enforce compliance with regulations, and provide effective oversight of insured deposit‑taking institutions. Its mission is to promote financial inclusion and stability by reassuring Nigerians of the security of their savings. Deposit insurance coverage has been enhanced: 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 covered up to N2 million. This expanded protection now covers approximately 98.98 % of depositors in DMBs, 99.27 % in MFBs, 99.34 % in PMBs, and 99.99 % in PSBs.
ACCI President Emeka Obegolu highlighted the NDIC’s crucial role in safeguarding the country’s financial system, aligning with the fair’s theme “Sustainability: Consumption, Incentives and Taxation.” He praised the corporation for extending deposit insurance to a wide range of banks and financial institutions, thereby 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 especially significant in Nigeria’s evolving 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 for Nigerians to exercise caution and diligence in their financial decisions.
Comments are closed for this story.