The Nigeria Deposit Insurance Corporation has warned Nigerians against placing their savings with unlicensed financial operators and fraudulent investment schemes, amid concerns over the continued spread of illegal money-making platforms.
The Managing Director and Chief Executive Officer of the NDIC, Thompson Sunday, issued the warning on Wednesday in Abuja while speaking at the Corporation’s Special Day during the 21st Abuja International Trade Fair.
The trade fair was held under the theme, “Resilience: Trade, Taxation and the Economy.”
Sunday said protecting citizens’ deposits and maintaining confidence in the formal financial system were essential to achieving the Federal Government’s ambition of building a $1tn economy by 2030.
He urged members of the public to be particularly cautious about investment opportunities offering unusually high returns without clear regulatory oversight.
According to the NDIC chief, some Nigerians continue to keep significant amounts of money outside regulated financial institutions or hand their savings to unlicensed operators because of promises of extraordinary profits.
He said the repeated collapse of Ponzi schemes had shown the serious financial and emotional consequences of entrusting funds to unregulated entities.
Sunday advised prospective investors to conduct proper checks before committing their money, particularly when an investment opportunity appears to offer returns that are difficult to justify.
He said members of the public should verify the status of financial operators and seek relevant information from regulators before investing.
While warning about illegal schemes, the NDIC boss also highlighted the protection available to customers of licensed financial institutions.
He explained that the Corporation serves as a major safety net within Nigeria’s financial system by providing deposit insurance for customers of covered institutions.
Sunday noted that the deposit insurance limits were reviewed in 2024 as part of efforts to strengthen depositor protection. Under the revised limits, depositors with Deposit Money Banks and Mobile Money Operators are insured up to N5m, while customers of Microfinance Banks, Primary Mortgage Banks and Payment Service Banks have coverage of up to N2m per depositor.
The NDIC chief said the revised limits provide full deposit insurance coverage for more than 98 per cent of bank depositors in the country.
He explained that the arrangement was designed to reduce the impact of bank failures on households and small businesses while helping to sustain confidence in the financial system.
For depositors whose balances exceed the insured limits, Sunday said the NDIC continues to pay liquidation dividends as recoveries are made from debts owed to failed banks and proceeds are realised from the disposal of their assets.
He said the process was intended to ensure that depositors continue to have confidence in the banking system even when a financial institution becomes insolvent.
Beyond expanding coverage, the NDIC has also intensified the use of technology in processing claims, moving away from lengthy physical verification procedures.
Sunday said digital tools, including the Single Customer View framework, Bank Verification Numbers and the payment infrastructure of the Nigeria Inter-Bank Settlement System, had made it possible for verified depositors to receive insured funds within days after the closure of a bank.
He also announced the deployment of an upgraded NDIC website designed to improve access to information and services for depositors and members of the public.
According to him, the new platform includes a digital portal with a Quick Action Bar through which users can initiate claims and check the status of banks.
The website also features an artificial intelligence-powered virtual assistant intended to provide real-time assistance and guidance to users seeking information from the Corporation.
Sunday urged bank customers to ensure that their account information and Bank Verification Numbers were correctly linked across their financial institutions.
He said accurate and synchronised records would make background verification easier and help ensure that legitimate depositors receive their insured funds without unnecessary delays.
The NDIC chief’s warning comes as the Corporation continues to encourage Nigerians to rely on regulated financial institutions and verify the credentials of investment operators before committing their savings.
