NDIC warns Nigerians against Ponzi schemes, stressing that only funds in CBN-licensed banks are protected by deposit insurance

NDIC warns Nigerians to be vigilant against fraudulent investment platforms and Ponzi schemes, reminding the public that only funds placed in licensed banks enjoy deposit insurance protection.

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The Managing Director of the Nigeria Deposit Insurance Corporation, Thompson Sunday, issued the caution during the NDIC’s special day at the 20th Abuja International Trade Fair.

Represented by Mrs Bimpe Akande, Sunday emphasised that safeguarding depositors’ funds and financial stability remains the corporation’s core mandate.

He explained that depositors in Deposit Money Banks, Non-Interest Banks and Mobile Money Operators are insured up to ₦5 million, while those in Payment Service Banks, Microfinance Banks and Primary Mortgage Banks are covered up to ₦2 million.

Citing the revocation of Heritage Bank’s licence in 2024, Sunday said insured customers were promptly reimbursed, while depositors with higher balances continued receiving liquidation dividends from recovered assets.

“For over three decades, the NDIC has fortified the financial system by protecting depositors, supervising banks, and managing resolutions in cases of failure,” he stated.

The Abuja Chamber of Commerce and Industry praised the NDIC’s role in building trust and stability, particularly for small businesses and entrepreneurs.

The warning comes just days after the Securities and Exchange Commission raised alarm over a surge in AI-driven scams.

Fraudsters have been using deepfake videos and fake celebrity endorsements to lure unsuspecting Nigerians into fraudulent schemes circulating via Facebook, Instagram and Telegram.