No Insurance Coverage For Illegal Fund Managers, NDIC Warns

Nigeria Deposit Insurance Corporation (NDIC) has warned the public of the high risk associated with investing funds with illegal funds managers, stating that, NDIC coverage did not extend to such firms.

With the recent increase in investment channels arising from innovative products, there has been an increase in illegal fund managers who have been using different platforms soliciting public to invest their funds with them, promising excessive returns on such investments.

However, to protect unsuspecting depositors, NDIC promised to continue sensitising the public on the risk of investing with these firms.

In a statement from the corporation, made available to LEADERSHIP yesterday, NDIC informed the public that, contrary to claims by some of these funds managers, the corporation does not insure investments with them.

“The NDIC insures only deposits of financial institutions licensed by the Central Bank of Nigeria (CBN) to accept deposits from the public.

“To confirm whether a financial institution is covered by the deposit insurance scheme of the NDIC, please visit our website at www.ndic.gov.ng and click on Who We Cover for the complete list. You can also address any other enquiry to the Director, Communication & Public Affairs Department, Nigeria Deposit Insurance Corporation,” it pointed out.

It equally advised the public to report any entity suspected to be involved in illegal deposit mobilisation to the law enforcement agencies.