NDIC Warns Nigerians Against Ponzi Schemes, Urges Savings Only in CBN-Licensed Banks

NDIC Warns Nigerians Against Ponzi Schemes, Urges Savings Only in CBN-Licensed Banks

The Nigeria Deposit Insurance Corporation (NDIC) has urged Nigerians to stay alert and avoid Ponzi schemes and fraudulent online investment platforms that continue to target unsuspecting citizens.

The Managing Director of the Corporation, Mr. Thompson Oludare Sunday, delivered the warning during the NDIC Special Day at the 46th Kano International Trade Fair, themed “Empowering SMEs for Sustainable Development.” He was represented by Kayode Sokunbi, Deputy Director, Procurement, Management Services Department.

Oludare advised Nigerians to ensure their funds are kept only in Central Bank of Nigeria (CBN)-licensed banks, all of which enjoy NDIC deposit insurance protection.

“Your vigilance is crucial to safeguarding your hard-earned savings,” he said, encouraging visitors to engage with the NDIC team at the Trade Fair for guidance on safe banking practices.

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For over 37 years, the NDIC has played a crucial role in protecting depositors—especially the most vulnerable—while supporting the stability of Nigeria’s financial system. Its mandate includes insuring deposits, supervising financial institutions, managing distressed banks and ensuring orderly resolution during bank failures.

Oludare reaffirmed the corporation’s commitment to maintaining a secure financial environment, noting that the NDIC works closely with the CBN to strengthen regulatory compliance and oversight across insured institutions.

He also emphasized the importance of linking all bank accounts to the correct Bank Verification Number (BVN) details. This, he said, ensures seamless access to insured compensation in the event of bank failure.

According to the NDIC, depositors are entitled to ₦5,000,000 insurance coverage for commercial banks and mobile money operators, and ₦2,000,000 for microfinance banks, primary mortgage banks and payment service banks. Payments, he noted, would be made directly into an alternate bank account bearing the same name as the customer’s official identity documents.

 

NDIC Warns Nigerians Against Ponzi Schemes, Urges Savings Only in CBN-Licensed Banks