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The Nigeria Deposit Insurance Corporation (NDIC) has cautioned Nigerians to remain vigilant against fraudulent investment platforms, including Ponzi schemes, stressing that only funds kept in licensed financial institutions are protected by deposit insurance.
The NDIC Managing Director, Mr. Thompson Sunday, delivered the message during the corporation’s special day at the 20th Abuja International Trade Fair. Represented by the Director of Performance Management, Mrs. Bimpe Sunday, he reiterated that the corporation’s core mandate is to protect depositors and safeguard financial system stability.
“We urge Nigerians to be cautious of Ponzi schemes and unregulated investment platforms. Always ensure your savings are placed in Central Bank of Nigeria-licensed banks, all of which are covered by NDIC deposit insurance. This is critical to protecting your hard-earned money,” he stated.
According to the NDIC, deposit insurance coverage has been expanded to different categories of financial institutions. Depositors in Deposit Money Banks, Mobile Money Operators, and Non-Interest Banks enjoy protection of up to ₦5 million, while those in Payment Service Banks, Microfinance Banks, and Primary Mortgage Banks are insured up to ₦2 million. This, the agency noted, guarantees that nearly all depositors are adequately protected.
Citing recent interventions, the NDIC recalled the revocation of Heritage Bank’s licence in June 2024, where insured depositors were promptly reimbursed, while customers with balances above ₦5 million are being settled through liquidation dividends from recovered assets.
“For over 30 years, the NDIC has been instrumental in protecting depositors’ funds and enhancing the resilience of Nigeria’s banking sector. Our responsibilities include insuring deposits, supervising financial institutions, resolving distressed banks, and ensuring smooth payouts when failures occur,” Sunday noted.
At the event, the President of the Abuja Chamber of Commerce and Industry, Dr. Emeka Obegolu—represented by Director-General Agabaidu Jideani—commended the NDIC for extending its deposit protection scheme beyond traditional banks to include microfinance, mortgage, non-interest, and payment service institutions. He said this move has boosted confidence for entrepreneurs and SMEs to participate actively in the economy.
Meanwhile, the Securities and Exchange Commission (SEC) has raised fresh concerns about the surge in investment scams leveraging artificial intelligence (AI). The regulator revealed that fraudsters now deploy deepfake videos, doctored endorsements from celebrities and politicians, and AI-generated content to lure unsuspecting investors with false promises of guaranteed returns.
To counter these threats, SEC disclosed that it is strengthening its surveillance systems with advanced technology capable of detecting and shutting down fraudulent activities in real time.
Both NDIC and SEC emphasized the need for Nigerians to exercise financial caution, stay informed, and rely only on regulated financial institutions to safeguard their savings.
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