The Nigeria Deposit Insurance Corporation (NDIC) has urged Nigerians to verify the status of investment schemes and fund managers before committing their hard-earned money, warning against unlicensed operators and Ponzi schemes promising extraordinary returns.
Managing Director/Chief Executive of the NDIC, Thompson Oludare Sunday, gave the warning on Wednesday, at the corporation’s Special Day, during the 21st Abuja International Trade Fair, organised by the Abuja Chamber of Commerce, Industry, Mines and Agriculture.
Sunday said Nigerians should keep their money in licensed and regulated financial institutions, noting that the collapse of Ponzi schemes had repeatedly demonstrated the severe financial and emotional consequences of entrusting funds to unregulated operators.
‘There are still Nigerians who keep substantial funds outside the formal banking system or entrust their savings to unlicensed fund managers, attracted by promises of extraordinary and unrealistic returns,’ he said.
According to him, the consequences of such decisions could be devastating, urging potential investors to pause, ask questions and verify the legitimacy of an investment opportunity before committing their funds.
‘If an investment promise sounds too good to be true, Nigerians should pause, ask questions and verify before committing their money,’ Sunday said.
He stated that the NDIC, as a critical pillar of Nigeria’s financial safety-net architecture, was working to strengthen confidence in the banking system through deposit guarantee, bank supervision in collaboration with the Central Bank of Nigeria, failure resolution and bank liquidation.
Sunday said the corporation enhanced deposit insurance coverage in 2024, raising the maximum insured limit to ?5 million per depositor per Deposit Money Bank and Mobile Money Operator, and ?2 million per depositor for Microfinance Banks, Primary Mortgage Banks and Payment Service Banks.
He said the enhanced coverage provided full protection for more than 98 percent of depositors across insured institutions, helping to protect households, small businesses and vulnerable depositors from the immediate consequences of bank failure.
For depositors whose balances exceed the insured limits, he said the NDIC continued to pay liquidation dividends from recoveries of debts owed to failed institutions and the disposal of their physical assets.
The NDIC boss said the Corporation had also deployed technology, including the Bank Verification Number, Single Customer View framework and NIBSS infrastructure, to accelerate the reimbursement of depositors of failed banks.
‘Today, verified depositors of failed banks receive their insured deposits within days of bank closure,’ he said.
Sunday said the NDIC had repositioned itself from being merely a payer of claims after bank failures to a ‘Risk Minimizer’ focused on identifying vulnerabilities early and preventing institutional problems from escalating into systemic crises.
He listed Risk-Based Supervision, an enhanced Differential Premium Assessment System, the Single Customer View Framework, distress resolution tools and the Bank Liquidation Management System among initiatives introduced to strengthen the Corporation’s institutional framework.
The NDIC chief also urged Nigerians to make use of the Corporation’s upgraded website launched on September 19, 2026, describing it as a one-stop digital gateway for depositors and other stakeholders.
He further noted the platform provides information on deposit insurance coverage limits, claims processing and institutions insured by the NDIC, while its Quick Action Bar gives users access to services including filing claims, checking banks, reporting failed banks and accessing frequently asked questions.
The website also features an artificial intelligence-powered virtual assistant designed to provide faster access to information, he added.
Sunday stressed that technology and regulation alone could not guarantee financial security, describing financial literacy as ‘the first line of defence’ for depositors and business owners.
He advised businesses and members of the public to strengthen their financial literacy, use digital financial services responsibly, maintain sound financial practices and seek guidance from relevant regulatory institutions when necessary.
‘The more informed the public becomes, the stronger our collective capacity to build a resilient financial system,’ he said.