LunagisthubProtecting Your Savings: NDIC Warns Against Ponzi Schemes
The Nigeria Deposit Insurance Corporation (NDIC) is urging Nigerians to be cautious of fraudulent investment schemes and Ponzi operations. According to the NDIC, only funds placed in licensed banks are protected by deposit insurance. This warning comes as part of the corporation’s efforts to safeguard depositors’ funds and maintain financial stability.
The NDIC has expanded its protection to cover depositors across various banking institutions. Depositors in .
Deposit Money Banks, Mobile Money Operators, and Non-Interest Banks are covered up to N5 million
Payment Service Banks, Microfinance Banks, and Primary Mortgage Banks :are protected up to N2 million
This coverage ensures that nearly all depositors are safeguarded, providing an added layer of security for individuals and businesses.
The NDIC has acted swiftly to protect depositors in failed banks. For instance, when Heritage Bank’s license was revoked in June 2024, insured depositors were promptly reimbursed. Customers with balances above N5 million were paid their outstanding claims through liquidation dividends from recovered assets.
Staying Vigilant
To protect your hard-earned savings, it’s essential to:
Be cautious of Ponzi schemes and other fraudulent investment platforms
Ensure your funds are placed in Central Bank of Nigeria-licensed banks
Verify the NDIC’s deposit insurance coverage for your bank
By being vigilant and taking the necessary precautions, you can minimize the risk of losing your savings to unscrupulous operators.
The NDIC has played a vital role in safeguarding depositors’ funds for over three decades, and its efforts have helped fortify the financial system. By working together, we can maintain a stable and secure financial environment for all Nigerians.
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