The Nigeria Deposit Insurance Corporation (NDIC) has cautioned Nigerians to be wary of fraudulent investment platforms, warning that only deposits held in banks licensed by the Central Bank of Nigeria (CBN) are protected under its insurance scheme.
Managing Director of the NDIC, Thompson Sunday, issued the warning on Thursday during the Corporation’s Special Day at the ongoing Abuja International Trade Fair. He was represented by Bimpe Akande, Director of the Performance Management Department.
“Our people must remain vigilant against Ponzi schemes and other fraudulent platforms. Always ensure your money is kept with CBN-licensed banks, which are fully covered by NDIC deposit insurance. That is the only way to secure your hard-earned savings,” Sunday said.
The NDIC boss explained that the agency now insures deposits up to ₦5 million for customers of Deposit Money Banks, Mobile Money Operators and Non-Interest Banks, while clients of Microfinance Banks, Primary Mortgage Banks and Payment Service Banks are covered up to ₦2 million. The expanded coverage, he noted, means nearly all Nigerian depositors are fully protected.
He cited the case of Heritage Bank, whose licence was revoked in June 2024, as proof of the agency’s readiness to protect customers. Insured depositors were reimbursed promptly, while those with balances above ₦5 million are receiving payments through liquidation dividends from recovered assets.
“For more than three decades, NDIC has safeguarded depositors’ funds, especially the most vulnerable, while ensuring stability in the financial system,” Sunday said, outlining the Corporation’s role in deposit insurance, bank supervision, and managing distressed institutions.
At the trade fair, NDIC also urged visitors to engage with its pavilion to learn more about deposit protection and how to identify fraudulent schemes.
President of the Abuja Chamber of Commerce and Industry (ACCI), Emeka Obegolu—represented by the Chamber’s Director-General, Agabaidu Jideani—praised NDIC’s interventions, noting that its expanded coverage across microfinance, mortgage, non-interest banks, payment service banks and mobile money operators has boosted confidence for SMEs and entrepreneurs.
The renewed warning comes as regulators raise alarm over a surge in tech-driven scams. Earlier this week, the Securities and Exchange Commission (SEC) flagged an increase in Ponzi schemes deploying artificial intelligence tools—including deepfake videos of celebrities and politicians—to lure unsuspecting Nigerians with promises of guaranteed returns.
The SEC said it is stepping up real-time surveillance to combat the rising threat of AI-powered financial fraud.
