The Nigeria Deposit Insurance Corporation (NDIC) has issued a warning to Nigerians to be wary of ponzi schemes and unlicensed fund managers. According to the Managing Director/Chief Executive Officer of the Corporation, Thompson Sunday, there are still Nigerians who keep substantial funds outside the formal banking system or entrust their savings to unlicensed fund managers, attracted by promises of extraordinary and unrealistic returns. He noted that if an investment promise sounds too good to be true, Nigerians should pause, ask questions, and verify before committing their money.
The NDIC boss made this statement during the NDIC Special Day at the 21st Abuja International Trade Fair, where he addressed the theme, “Resilience: Trade, Taxation and the Economy.” He emphasized that it has become inevitable to help safeguard the public given the adverse effects such scams portend for the health of the economy. The proliferation and collapse of Ponzi schemes have demonstrated, time and again, the enormous financial and emotional cost of placing hard-earned resources in unregulated schemes.
Thompson Sunday also pointed out that the NDIC has strengthened measures to fortify the financial system and warn depositors. Following a significant policy enhancement in 2024, maximum deposit insurance coverage limits were raised to N5m per depositor for Deposit Money Banks and Mobile Money Operators, alongside N2m per depositor for Microfinance Banks, Primary Mortgage Banks, and Payment Service Banks. This enhancement guarantees 100 per cent deposit coverage for more than 98 per cent of bank depositors nationwide.
The NDIC chief added that for account balances above the insured limits, the NDIC steadily distributes liquidation dividends derived from debt recoveries and asset disposals so that no depositor loses faith in the financial system. He also revealed that the Corporation has fully embraced modern digital systems to deliver faster claim payments, shifting away from slow, paper-heavy physical verifications. By leveraging tools like the Single Customer View framework, Bank Verification Numbers, and NIBSS payment infrastructure, verified depositors now receive payments within days of a bank closure.
Thompson Sunday further emphasized that the NDIC is committed to streamlining depositor protection. The Corporation has implemented a framework to ensure that depositors are protected in the event of bank insolvencies. He noted that the NDIC has been working to educate the public on the risks associated with ponzi schemes and unlicensed fund managers.
The warning from the NDIC comes as a significant effort to safeguard Nigerians from financial scams. The Corporation has been working to strengthen its regulatory framework to prevent such scams from occurring. The NDIC has also been working with other financial regulatory bodies to ensure that depositors are protected.
In conclusion, the NDIC has urged Nigerians to be cautious of ponzi schemes and unlicensed fund managers. The Corporation has emphasized the importance of verifying investment opportunities before committing money. With the implementation of modern digital systems, the NDIC is committed to delivering faster claim payments to depositors in the event of bank insolvencies.
Key points
- NDIC warns Nigerians to be cautious of ponzi schemes and unlicensed fund managers.
- The Corporation has strengthened measures to fortify the financial system and warn depositors.
- The NDIC has implemented a framework to ensure that depositors are protected in the event of bank insolvencies.
