The Nigeria Deposit Insurance coverage Company (NDIC) has cautioned Nigerians to be cautious of Ponzi schemes and fraudulent funding platforms, stressing that solely funds stored with licensed banks below the Central Financial institution of Nigeria (CBN) regulation are insured.
The managing director/chief government of the NDIC, Thompson Oludare Sunday, gave the warning on Thursday throughout the company’s big day on the ongoing twentieth Abuja Worldwide Commerce Truthful. He mentioned many unsuspecting Nigerians had fallen sufferer to doubtful monetary schemes, shedding their hard-earned financial savings to neither regulated nor insured operators.
“I want to emphasise the significance of Nigerians remaining vigilant in opposition to Ponzi schemes and different fraudulent funding platforms. At all times guarantee your funds are positioned solely in Central Financial institution of Nigeria-licensed banks, all coated by deposit insurance coverage supplied by the NDIC. This vigilance is essential to defending your hard-earned financial savings,” he acknowledged.
Sunday highlighted that the NDIC has, for over three many years, performed a significant function in safeguarding depositors’ funds and selling monetary system stability. He defined that depositors of Deposit Cash Banks (DMBs), Cellular Cash Operators and Non-Curiosity Banks are insured as much as ₦5 million. On the similar time, these in Cost Service Banks (PSBs), Microfinance Banks (MFBs), and Main Mortgage Banks (PMBs) are coated as much as ₦2 million. In accordance with him, this protects greater than 98 per cent of depositors throughout the banking system.
Citing the revocation of Heritage Financial institution’s licence in June 2024 for instance, the NDIC boss mentioned the Company promptly reimbursed depositors utilizing the Financial institution Verification Quantity (BVN) system. He famous that whereas these with balances above the insured restrict obtained ₦5 million initially, additional funds are being made by way of liquidation dividends as property are offered and money owed recovered.
Earlier, the president of the Abuja Chambers of Commerce and Business, Emeka Obegolu mentioned by defending depositors and guaranteeing confidence within the banking system, NDIC gives the steadiness required for companies, together with SMEs represented by the ACCI, to entry monetary companies, thrive of their operations, and increase into export markets. He mentioned the function is much more essential in in the present day’s international financial system, the place monetary resilience is immediately linked to sustainable development.
Dr. Obegolu mentioned by extending deposit insurance coverage protection past deposit cash banks to incorporate microfinance banks, mortgage banks, non-interest banks, fee service banks, and cell cash operators, NDIC has proven responsiveness to the evolving dynamics of Nigeria’s monetary panorama.
“For us on the ACCI, the NDIC is greater than a regulator; it’s a strategic associate in advocacy and financial improvement. By working collectively, we will construct stronger linkages between monetary security, enterprise development, and nationwide improvement,” he acknowledged, including that the synergy is important in advancing Nigeria’s competitiveness, lowering enterprise dangers, and guaranteeing that the monetary system helps innovation, job creation, and sustainable funding.
The NDIC CEO reaffirmed the company’s dedication to depositor safety and monetary stability, noting that conventional banks stay important regardless of the expansion of economic know-how. He inspired contributors on the commerce truthful to go to the NDIC pavilion to be taught extra about deposit insurance coverage and methods to safeguard their financial savings.
