The Nigeria Deposit Insurance Corporation (NDIC) has cautioned Nigerians to remain vigilant against rising Ponzi schemes and unlicensed investment platforms, warning that millions of citizens risk losing their savings to fraudulent operators outside the regulated financial system.
The Managing Director/Chief Executive of the corporation, Mr. Thompson Oludare Sunday, gave the warning during the NDIC Special Day at the 46th Kano International Trade Fair, where he emphasised that only banks licensed by the Central Bank of Nigeria (CBN) are covered by deposit insurance.
“I urge all Nigerians to remain vigilant against Ponzi schemes and fraudulent investment platforms. Always ensure your funds are placed only in CBN-licensed banks, all of which are covered by NDIC deposit insurance. Your vigilance is crucial to safeguarding your hard-earned savings,” he said.
Mr. Sunday said fraudulent investment platforms continue to exploit unsuspecting citizens, taking advantage of economic hardship and low financial literacy.
He stressed that NDIC’s mandate does not extend to such platforms and that victims usually have no legal protection when these schemes collapse.
Speaking further, he highlighted the corporation’s efforts to strengthen public confidence in the financial system through improved deposit insurance coverage. He noted that the NDIC recently increased the maximum coverage to N5 million for depositors in Deposit Money Banks (DMBs), Mobile Money Operators (MMOs) and Non-Interest Banks (NIBs), while customers of Payment Service Banks (PSBs), Microfinance Banks (MFBs) and Primary Mortgage Banks (PMBs) are insured up to N2 million.
“This expanded coverage protects about 99 percent of depositors nationwide,” he said, adding that in the event of a bank failure, customers would receive an initial payout up to the insured limit, with outstanding balances settled through liquidation dividends.
The NDIC boss also urged bank customers to ensure that their Bank Verification Number (BVN) matches the names on their official identification documents, explaining that this would enable prompt payout without visiting NDIC offices.
DAILY TRUST.
