NDIC Warns Against Ponzi Schemes, Urges Vigilance In Financial Transactions

The Nigeria Deposit Insurance Corporation (NDIC) has cautioned Nigerians to beryllium wary of Ponzi schemes and fraudulent concern platforms, stressing that lone funds kept with licensed banks nether the Central Bank of Nigeria (CBN) regularisation are insured.

The managing director/chief enforcement of the NDIC, Thompson Oludare Sunday, gave the informing connected Thursday during the corporation’s peculiar time astatine the ongoing 20th Abuja International Trade Fair. He said galore unsuspecting Nigerians had fallen unfortunate to dubious fiscal schemes, losing their hard-earned savings to neither regulated nor insured operators.

“I would similar to emphasise the value of Nigerians remaining vigilant against Ponzi schemes and different fraudulent concern platforms. Always guarantee your funds are placed lone successful Central Bank of Nigeria-licensed banks, each covered by deposit security provided by the NDIC. This vigilance is important to protecting your hard-earned savings,” helium stated.

Sunday highlighted that the NDIC has, for implicit 3 decades, played a captious relation successful safeguarding depositors’ funds and promoting fiscal strategy 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 aforesaid time, those successful Payment Service Banks (PSBs), Microfinance Banks (MFBs), and Primary Mortgage Banks (PMBs) are covered up to ₦2 million. According to him, this protects much than 98 per cent of depositors crossed the banking system.

Citing the revocation of Heritage Bank’s licence successful June 2024 arsenic an example, the NDIC brag said the Corporation promptly reimbursed depositors utilizing the Bank Verification Number (BVN) system. He noted that portion those with balances supra the insured bounds received ₦5 cardinal initially, further payments are being made done liquidation dividends arsenic 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 assurance successful the banking system, NDIC provides the stableness required for businesses, including SMEs represented by the ACCI, to entree fiscal services, thrive successful their operations, and grow into export markets. He said the relation is adjacent much captious successful today’s planetary economy, wherever fiscal resilience is straight linked to sustainable growth.

Dr. Obegolu said by extending deposit security sum beyond deposit wealth banks to see microfinance banks, owe banks, non-interest banks, outgo work banks, and mobile wealth operators, NDIC has shown responsiveness to the evolving dynamics of Nigeria’s fiscal landscape.

“For america astatine the ACCI, the NDIC is much than a regulator; it is simply a strategical spouse successful advocacy and economical development. By moving together, we tin physique stronger linkages betwixt fiscal safety, endeavor growth, and nationalist development,” helium stated, adding that the synergy is captious successful advancing Nigeria’s competitiveness, reducing concern risks, and ensuring that the fiscal strategy supports innovation, occupation creation, and sustainable investment.

The NDIC CEO reaffirmed the corporation’s committedness to depositor extortion and fiscal stability, noting that accepted banks stay captious contempt the maturation of fiscal technology. He encouraged participants astatine the commercialized just to sojourn the NDIC pavilion to larn much astir deposit security and however to safeguard their savings.