NDIC warns Nigerians against Ponzi schemes

By Maduabuchi Nmeribeh/Kano

The Nigeria Deposit Insurance Corporation (NDIC), has appealed to Nigerians to desist from doing business with Ponzi schemes of any guise, describing them as illegal financial institutions whose major aim is to defraud hapless depositors and investors.

The Managing Director/Chief Executive Officer of NDIC, Mr. Thompson Oludare Sunday, gave the warning on Wednesday in Kano, at the NDIC Special Day, during the 46th Kano International Trade Fair, 2025.

Mr. Sunday urged, “all Nigerians to remain vigilant against Ponzi schemes and fraudulent investment platforms. Always ensure your funds are placed only in Central Bank of Nigeria-licensed banks, all of which are covered by NDIC deposit insurance.”

He reminded Nigerians that their vigilance remains crucial to safeguarding their hard earned savings.

Mr. Sunday further stated that the NDIC tagline, “Protecting Your Bank Deposits,” reflected its commitment to promoting financial inclusion and stability – reassuring Nigerians that their savings are secure.

He said NDIC has made significant strides in enhancing depositor protection, notably through increased maximum deposit insurance coverage.

According to him: “Currently, the NDIC insures depositors of Deposit Money Banks (DMBs), Mobile Money Operators (MMOs), and Non-Interest Banks (NIBs) up to the sum of N5,000,000.

“For Payment Service Banks (PSBs), Microfinance Banks (MFBs), and Primary Mortgage Banks (PMBs), the coverage is N2,000,000. This expanded coverage protects approximately 99% of depositors, reflecting our unwavering commitment to our mandate.”

Mr. Sunday added that: “In the rare event of a bank failure, depositors exceeding the insured coverage limit will receive an initial payment up to the insured amount mentioned above, with remaining balances paid through liquidation dividends. These dividends are distributed from the proceeds of a failed bank’s assets and are paid on a pro-rata basis, ensuring fairness.

“I would like to emphasize the importance of linking your Bank Verification Number (BVN) with your correct name as stated in all official identity documents.”

He further stated that linking BVN with correct name ensures that, “in the unlikely event of a bank failure, you will promptly receive your insured sum of N5,000,000 for commercial banks and mobile money operators, and N2,000,000 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 reassured Nigerians that with NDIC, their money is safe and accessible when needed, adding that, “with the rapid growth of financial technology, traditional banks still play a vital role in the banking system.

“The NDIC and CBN have strengthened regulatory frameworks to ensure compliance and stability among all deposit-taking institutions.”

Mr. Sunday further revealed that despite the March 2026 deadline for the recapitalization of banks, the NDIC will ensure a smooth process and stands fully ready for any necessary regulatory interventions to maintain confidence and stability in the financial system.

He noted that the Trade Fair with the theme: “Empowering SMEs for Sustainable Development,” was a vital meeting point, “where ideas meet markets, where creativity meets opportunity, and where innovation fuels economic growth. Such platforms remain instrumental in strengthening entrepreneurship, promoting financial literacy, and supporting Nigeria’s development objectives.”