NDIC Warns Against Ponzi Schemes, Urges Vigilance In Financial Transactions

The Nigeria Deposit Insurance Corporation (NDIC) has cautioned Nigerians to be wary of Ponzi schemes and fraudulent investment platforms, stressing that only funds kept with licensed banks under the Central Bank of Nigeria (CBN) regulation are insured.

The managing director/chief executive of the NDIC, Thompson Oludare Sunday, gave the warning on Thursday during the corporation’s special day at the ongoing 20th Abuja International Trade Fair. He said many unsuspecting Nigerians had fallen victim to dubious financial schemes, losing their hard-earned savings to neither regulated nor insured operators.

“I would like to emphasise the importance of Nigerians remaining vigilant against Ponzi schemes and other fraudulent investment platforms. Always ensure your funds are placed only in Central Bank of Nigeria-licensed banks, all covered by deposit insurance provided by the NDIC. This vigilance is crucial to protecting your hard-earned savings,” he stated.

Sunday highlighted that the NDIC has, for over three decades, played a vital role in safeguarding depositors’ funds and promoting financial system stability. He explained that depositors of Deposit Money Banks (DMBs), Mobile Money Operators and Non-Interest Banks are insured up to ₦5 million. At the same time, those in Payment Service Banks (PSBs), Microfinance Banks (MFBs), and Primary Mortgage Banks (PMBs) are covered up to ₦2 million. According to him, this protects more than 98 per cent of depositors across the banking system.

Citing the revocation of Heritage Bank’s licence in June 2024 as an example, the NDIC boss said the Corporation promptly reimbursed depositors using the Bank Verification Number (BVN) system. He noted that while those with balances above the insured limit received ₦5 million initially, further payments are being made through liquidation dividends as assets are sold and debts recovered.

Earlier, the president of the Abuja Chambers of Commerce and Industry, Emeka Obegolu said by protecting depositors and ensuring confidence in the banking system, NDIC provides the stability required for businesses, including SMEs represented by the ACCI, to access financial services, thrive in their operations, and expand into export markets. He said the role is even more critical in today’s global economy, where financial resilience is directly linked to sustainable growth.

Dr. Obegolu said by extending deposit insurance coverage beyond deposit money banks to include microfinance banks, mortgage banks, non-interest banks, payment service banks, and mobile money operators, NDIC has shown responsiveness to the evolving dynamics of Nigeria’s financial landscape.

“For us at the ACCI, the NDIC is more than a regulator; it is a strategic partner in advocacy and economic development. By working together, we can build stronger linkages between financial safety, enterprise growth, and national development,” he stated, adding that the synergy is vital in advancing Nigeria’s competitiveness, reducing business risks, and ensuring that the financial system supports innovation, job creation, and sustainable investment.

The NDIC CEO reaffirmed the corporation’s commitment to depositor protection and financial stability, noting that traditional banks remain vital despite the growth of financial technology. He encouraged participants at the trade fair to visit the NDIC pavilion to learn more about deposit insurance and how to safeguard their savings.