The Nigeria Deposit Insurance Corporation has called on Nigerians to remain cautious of deceptive investment schemes and Ponzi scams, cautioning that only money deposited in authorized banks is covered by deposit insurance.
The NDIC's Managing Director, Mr. Thompson Sunday, provided this assurance in Abuja on Thursday at the company's special event during the 20th Abuja International Trade Fair.
He was represented by Mrs. Bimpe Sunday, the Director of the Performance Management Department, who stated that the company's responsibility centered on protecting depositors and maintaining financial stability.
"I want to highlight the significance of Nigerians staying alert to Ponzi schemes and other deceptive investment websites. Make sure your money is only kept in banks licensed by the Central Bank of Nigeria, which are all protected by deposit insurance from the NDIC. This awareness is essential for safeguarding your valuable savings," he stated.
He pointed out that the NDIC has, over time, broadened its coverage to include depositors from various banking entities. Depositors in Deposit Money Banks, Mobile Money Operators, and Non-Interest Banks are protected up to N5m, whereas those in Payment Service Banks, Microfinance Banks, and Primary Mortgage Banks are covered up to N2m.
He stated that this coverage provides protection for almost all depositors.
The head of the NDIC also highlighted recent instances where the organization moved quickly to safeguard depositors in collapsed banks.
He remembered the cancellation of Heritage Bank's license in June 2024, noting that insured depositors were quickly compensated, while clients with amounts exceeding N5m were receiving their remaining claims via liquidation distributions from assets that had been recovered.
He stated, "For more than three decades, the NDIC has been essential in protecting depositors' money, especially for those who are most at risk, and in strengthening the financial system."
Our main goals involve guaranteeing deposits in authorized banks, overseeing financial entities, handling troubled banks, and facilitating a seamless resolution procedure when banks collapse. We are committed to safeguarding Nigerian banks.
Sunday also encouraged attendees at the exhibition to visit the NDIC booth to gain more information on deposit insurance and ways to steer clear of dishonest operators.
Previously, Emeka Obegolu, the President of the Abuja Chamber of Commerce and Industry, was represented by the Director-General of the Chamber, Agabaidu Jideani, who commended the NDIC for its efforts in protecting the financial system.
Obegolu stated that the company's involvement had contributed to enhancing stability and safeguarding local enterprises.
He praised the NDIC for expanding deposit insurance to include not only deposit money banks but also microfinance banks, mortgage banks, non-interest banks, payment service banks, and mobile money operators.
He stated that this move has established a more supportive atmosphere for entrepreneurs and small and medium enterprises to engage actively in the economy.
The PUNCH recently highlighted that the Securities and Exchange Commission has expressed concern about a rise in investment frauds leveraging artificial intelligence to deceive Nigerians with assurances of guaranteed profits and fabricated celebrity endorsements.
The Commission stated that the operators have been utilizing deepfake videos and other AI-created material to make deceptive schemes look genuine.
It also cautioned that altered videos featuring politicians, celebrities, and television hosts are being shared through Facebook advertisements, Instagram reels, and Telegram groups to create fake endorsements and testimonials.
Nevertheless, the SEC stated that it is implementing sophisticated monitoring systems able to identify deceptive behavior instantly in response to the increasing risk.
Provided by SyndiGate Media Inc.Syndigate.info).
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