NDIC urges Nigerians to remain vigilant against Phonzi Schemes, Others

The Nigeria Deposit Insurance Corporation(NDIC) has advised Nigerians to remain vigilant against Ponzi schemes and fraudulent investment platforms.

The Managing Director of the Corporation,Mr.Thompson Oludare Sunday,gave the advice at the NDIC Special Day at the 46th Kano International Trade Fair, with the theme:”Empowering SMEs for Sustainable Development.”

“Always ensure your funds are placed only in Central Bank of Nigeria-licensed banks, all of which are covered by NDIC deposit insurance.

“Your vigilance is crucial to safeguarding your hard-earned savings.I invite you to visit the NDIC Pavilion during this Trade Fair. Our team is ready to provide insights, answer questions, and share information on deposit insurance and our activities,”Oludare who was represented by Kayode Sokunbi, Deputy Director, Procurement,Management Services Department,said.

He stated that for the past 37 years, the NDIC had played a vital role in safeguarding depositors’ funds, particularly for the most vulnerable, and reinforcing the stability of the nation’s financial system.

“Our mission includes insuring deposits in licensed banks, supervising financial institutions, managing distressed banks, and ensuring a smooth resolution process during bank failures. We remain dedicated to protecting Nigerians’ bank deposits from financial instability.

“As we gather here, we are reminded of the critical role NDIC plays in driving economic growth and development. We remain committed to ensuring the stability and security of financial institutions in Nigeria.

“Our mandate is clear: we protect depositors’ funds, supervise banks, resolve distressed institutions, and liquidate failed banks. It is important to note that NDIC works in close collaboration with the Central Bank of Nigeria (CBN) to maintain stability in the banking sector, enforce compliance with regulations, and ensure effective oversight of insured deposit-taking institutions.

The Managing Director then emphasized the importance of linking customers’ Bank Verification Number (BVN) with their correct names as stated in all official identity documents.

“This ensures that, in the unlikely event of a bank failure, you will promptly receive your insured sum of #5,000,000 for commercial banks and mobile money operators, and ₩2,000,000 for microfinance, primary mortgage, and payment service banks, in an alternate bank account with the same name as on your ID without visiting any NDIC office,” he added.