NDIC Warns Nigerians Against Ponzi Schemes, Urges Use of Licensed Banks
NDIC Warns Nigerians Against Ponzi Schemes, Urges Use of Licensed Banks
The Nigeria Deposit Insurance Corporation (NDIC) has cautioned Nigerians against falling prey to fraudulent investment and Ponzi schemes, stressing that only deposits in licensed banks are insured and protected.
The NDIC Managing Director, Mr. Thompson Sunday, gave the warning on Thursday in Abuja during the corporation’s Special Day at the ongoing 20th Abuja International Trade Fair.
He was represented by the Director of the Performance Management Department, Mrs. Bimpe Akande.
Sunday reiterated the corporation’s mandate of safeguarding depositors and strengthening financial stability in the country, urging the public to always confirm that their savings and investments are placed in institutions duly licensed by the Central Bank of Nigeria (CBN).
“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 CBN-licensed banks, all of which are covered by deposit insurance provided by the NDIC.
This vigilance is crucial to protecting your hard-earned savings,” he stated.
He explained that the NDIC provides varying levels of coverage across financial institutions. Depositors in Deposit Money Banks, Mobile Money Operators, and Non-Interest Banks are insured up to ₦5 million, while those in Payment Service Banks, Microfinance Banks, and Primary Mortgage Banks are protected up to ₦2 million.
Highlighting the corporation’s responsiveness, the NDIC boss cited the case of Heritage Bank, whose licence was revoked in June 2024.
He said insured depositors were promptly reimbursed, while customers with balances above ₦5 million are receiving their outstanding claims through liquidation dividends from recovered assets.
“For over three decades, the NDIC has played a vital role in safeguarding depositors’ funds, particularly the most vulnerable, and fortifying the financial system,” he noted.
Sunday added that deposit insurance remains a cornerstone of financial inclusion and consumer protection, reassuring Nigerians that the NDIC will continue to act decisively to maintain confidence in the banking sector.
