The Nigeria Deposit Insurance Corporation has urged Nigerians to be more vigilant against fraudulent investment schemes and Ponzi operations, warning that only funds placed in licensed banks are protected by deposit insurance.
The Managing Director of the NDIC, Mr. Thompson Sunday, gave the assurance in Abuja on Thursday during the corporation’s special day at the 20th Abuja International Trade Fair
He was represented by the Director of the Performance Management Department, Mrs Bimpe Sunday, who explained that the corporation’s mandate was focused on protecting depositors and safeguarding financial stability.
“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 Central Bank of Nigeria-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 said.
He noted that the NDIC had, over the years, expanded its protection to cover depositors across different banking institutions. Depositors in Deposit Money Banks, Mobile Money Operators and Non-Interest Banks are covered up to N5m, while those in Payment Service Banks, Microfinance Banks and Primary Mortgage Banks are protected up to N2m.
According to him, this coverage ensures that nearly all depositors are safeguarded.
The NDIC boss also pointed to recent cases where the corporation had acted swiftly to protect depositors in failed banks.
He recalled the revocation of Heritage Bank’s licence in June 2024, explaining that insured depositors were promptly reimbursed, while customers with balances above N5m were being paid their outstanding claims through liquidation dividends from recovered assets.
He said, “For over three decades, the NDIC has played a vital role in safeguarding depositors’ funds, particularly the most vulnerable, and fortifying the financial system.
“Our primary objectives include insuring deposits in licensed banks, supervising financial institutions, managing distressed banks, and ensuring a smooth resolution process in the event of bank failures. We are dedicated to protecting Nigerians’ banks.”
Sunday further urged participants at the trade fair to take advantage of the NDIC pavilion to learn more about deposit insurance and how to avoid fraudulent operators.
Earlier, the President of the Abuja Chamber of Commerce and Industry, Emeka Obegolu, who was represented by the Director-General of the Chamber, Agabaidu Jideani, praised the NDIC for its role in safeguarding the financial system.
Obegolu said the corporation’s intervention had helped strengthen stability and protect small businesses.
He commended the NDIC for extending deposit insurance to cover not just deposit money banks but also microfinance banks, mortgage banks, non-interest banks, payment service banks and mobile money operators.
According to him, this step has created a more enabling environment for entrepreneurs and SMEs to participate confidently in the economy.
The PUNCH earlier this week reported that the Securities and Exchange Commission raised alarm over a surge in investment scams that use artificial intelligence to dupe Nigerians with promises of guaranteed returns and fake celebrity endorsements.
The Commission said the operators have been using deepfake videos and other AI-generated content to give fraudulent schemes an appearance of legitimacy.
It also warned that manipulated clips of politicians, celebrities and TV presenters are being circulated via Facebook ads, Instagram reels and Telegram groups to fabricate endorsements and testimonials.
However, the SEC explained that it is adopting advanced surveillance systems capable of detecting fraudulent activity in real time to counter the growing threat.
By Sami Tunji @ThePUNCH
