NDIC warns Nigerians against unregulated investment schemes

The Nigeria Deposit Insurance Corporation has warned Nigerians against placing their savings in illegal money schemes and unregulated financial institutions, saying promises of extraordinary returns can expose depositors to severe losses. NDIC Managing Director and Chief Executive Thompson Sunday issued the warning in Abuja on Wednesday during the corporation’s special day at the 21st Abuja International Trade Fair. The event was held under the theme, “Resilience: Trade, Taxation and the Economy.” Sunday said some Nigerians continued to keep substantial funds outside the formal banking system or with unlicensed fund managers.

He urged members of the public to pause, ask questions and verify investment offers before committing their money, particularly when the promised returns appeared unrealistic. He said the collapse of Ponzi schemes had repeatedly demonstrated the financial and emotional cost of using unregulated operators. In contrast, he highlighted the protection available through licensed banking institutions and the NDIC’s role as a safety net for depositors.

According to Sunday, maximum deposit insurance limits were increased in 2024 to N5m per depositor for Deposit Money Banks and Mobile Money Operators. The limit for Microfinance Banks, Primary Mortgage Banks and Payment Service Banks was raised to N2m per depositor. He said the revised limits provided full coverage for more than 98 per cent of bank depositors nationwide.

For balances above the insured limits, he said, the NDIC distributes liquidation dividends from debt recoveries and asset disposals. Sunday also said the corporation had adopted digital systems, including the Single Customer View framework, Bank Verification Numbers and NIBSS infrastructure, to speed up verified claims payments. He announced an upgraded website with a claims portal, bank-status checks and an artificial-intelligence virtual assistant.