Avoid Ponzi Schemes, Save Safely -NDIC Warns Nigerians

By Oluwakemi Kindness

The Nigeria Deposit Insurance Corporation (NDIC) has issued a fresh warning to Nigerians against falling victim to Ponzi schemes and fraudulent investment platforms, stressing that only funds kept in licensed and insured financial institutions are protected.

The caution was delivered during the NDIC Special Day at the 20th Abuja International Trade Fair, where the Corporation showcased its role in protecting depositors, promoting financial stability, and encouraging safer financial practices in line with the fair’s theme: “Sustainability, Consumption, Incentives and Taxation.”

Representing NDIC Managing Director/Chief Executive, Thompson Oludare-Sunday, the Director of Performance Management, Bimpe Akande, explained that the Corporation guarantees deposits up to ₦5 million for customers of deposit money banks, non-interest banks, and mobile money operators, and up to ₦2 million for customers of microfinance, mortgage, and payment service banks.

“Over 98 percent of depositors in Nigeria are fully covered under this insurance scheme. But we must emphasize that Ponzi schemes and other unregulated platforms are outside this safety net. Nigerians must stay vigilant and only save or invest in Central Bank of Nigeria-licensed banks insured by the NDIC,” she said.

The NDIC cited the closure of Heritage Bank in June 2024 as an example of its intervention, noting that depositors were promptly reimbursed through their BVNs.

Balances up to the insured ₦5 million limit were paid immediately, while higher balances are being settled through liquidation dividends from the bank’s recovered assets.

The Corporation also urged Nigerians to exercise caution in the growing digital finance space, stressing that while fintech and mobile banking are expanding, consumers must ensure platforms are licensed and insured.

NDIC reaffirmed its partnership with the Central Bank of Nigeria to strengthen oversight and protect depositors in the evolving financial system.

President of the Abuja Chamber of Commerce and Industry (ACCI), Dr. Chukwuemeka Obegolu, represented by Director-General Agabaidu Jideani, praised NDIC as more than a regulator, describing it as a “strategic partner in advocacy and economic development.”

He noted that NDIC’s coverage of not only commercial banks but also microfinance, mortgage, and payment service banks aligns with the trade fair’s theme of resilience and inclusivity in economic growth.

The NDIC Special Day also featured a giveaway session for participants, further engaging visitors on financial literacy and deposit protection.

The event was well attended by royal fathers, state exhibitors, civil society, government officials, and private sector stakeholders, underscoring the broad support for NDIC’s public sensitization drive.

Both NDIC and ACCI called for deeper collaboration between regulators, businesses, and the public to curb fraudulent schemes and promote financial literacy nationwide.

NDIC’s firm stance against Ponzi schemes highlights a broader commitment to protect Nigerians’ savings, build confidence in the financial system, and drive inclusive economic growth.

With ACCI’s backing and the support of traditional leaders and stakeholders at the Trade Fair, the message was clear: safe financial practices are the pathway to a stronger and more resilient economy.