NDIC warns Nigerians against Ponzi Schemes, urges savings in licensed banks

Stanley Ihedigbo

Nigeria Deposit Insurance Corporation (NDIC) has warned Nigerians against keeping substantial funds with unlicensed financial operators and Ponzi schemes, urging members of the public to entrust their money only to licensed and regulated financial institutions.

The Managing Director/Chief Executive of NDIC, Mr. Thompson Oludare Sunday, gave the warning while delivering the keynote address at the Corporation’s Special Day at the 21st Abuja International Trade Fair organised by the Abuja Chamber of Commerce, Industry, Mines and Agriculture.

Sunday said the warning became necessary as some Nigerians continue to fall victim to unregulated fund managers attracted by promises of extraordinary and unrealistic returns.

According to him, the collapse of Ponzi schemes has repeatedly demonstrated the enormous financial and emotional consequences of placing hard-earned resources in unregulated investment schemes.

“If an investment promise sounds too good to be true, Nigerians should pause, ask questions and verify before committing their money,” he cautioned.

The NDIC boss said the Corporation had remained a critical pillar of Nigeria’s financial safety-net architecture for more than three decades through its mandates of deposit guarantee, bank supervision in collaboration with the Central Bank of Nigeria, failure resolution and bank liquidation.

He explained that the responsibilities of the Corporation had direct implications for the resilience of the Nigerian economy because businesses required a trusted financial system capable of safeguarding working capital, facilitating payments and supporting access to credit for investment and expansion.

Sunday disclosed that the NDIC had enhanced deposit insurance coverage in 2024, increasing the maximum insured limit to ₦5 million per depositor per Deposit Money Bank (DMB) and Mobile Money Operator (MMO).

He added that the insured limit was increased to ₦2 million per depositor for Microfinance Banks (MFBs), Primary Mortgage Banks (PMBs) and Payment Service Banks (PSBs).

The enhanced coverage, he noted, provides full protection for more than 98 per cent of depositors across insured institutions, thereby protecting households, small businesses and other vulnerable depositors from the immediate consequences of bank failure.

For depositors whose balances exceed the insured limits, the NDIC boss said the Corporation would continue to pay liquidation dividends from recoveries made through debts owed to failed institutions and the disposal of their physical assets.

“Our objective is straightforward: no depositor should lose confidence in the banking system merely because an insured institution has failed,” he said.

Sunday further disclosed that the NDIC was transforming its reimbursement process through technology, including the use of Bank Verification Number (BVN), Single Customer View (SCV), NIBSS infrastructure and other digital solutions.

He said the deployment of technology had enabled the Corporation to move away from cumbersome manual processes towards faster and seamless reimbursement.

“Today, verified depositors of failed banks receive their insured deposits within days of bank closure,” he stated.

The NDIC chief executive explained that the Corporation was positioning itself not merely as a payer of claims after bank failure, but as a risk minimiser capable of identifying vulnerabilities early, strengthening safeguards and preventing institutional problems from escalating into systemic crises.

He said the Corporation had consequently strengthened its institutional framework in line with global best practices through initiatives including Risk-Based Supervision (RBS), an enhanced Differential Premium Assessment System (DPAS), the Single Customer View Framework, a full Distress Resolution Suite and the Bank Liquidation Management System (BLMS).

He also emphasised stronger collaboration between the NDIC, the Central Bank of Nigeria and other institutions within the financial safety-net architecture.

The NDIC boss also announced the launch of the Corporation’s upgraded website on September 19, 2026, describing it as a one-stop digital gateway for depositors and other stakeholders.

According to him, the new platform provides information on enhanced deposit insurance coverage limits, automated claims-processing features and an upgraded directory for checking NDIC-insured institutions.

He said the website also features a Quick Action Bar providing direct access to four major services: File Claim, Check Banks, Report Failed Bank and FAQs, as well as an AI-powered virtual assistant designed to improve interaction with users.

“This is more than a website upgrade. It is another step in our journey towards a more accessible, responsive and technology-driven NDIC,” Sunday said.

He urged depositors, creditors and shareholders of closed banks to make full use of the Corporation’s digital platforms when processing their claims.

Sunday also advised depositors to ensure that their account information was accurate and consistent across banks and properly linked to their BVNs to accelerate reimbursement processes.

He said depositors no longer needed to endure the inconvenience of visiting failed bank premises or NDIC offices for routine physical verification or carrying large volumes of documents between locations.

The NDIC chief executive, however, 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 therefore encouraged businesses and members of the public to improve their financial literacy, embrace digital financial services responsibly, maintain sound financial practices and seek guidance from relevant regulatory institutions whenever necessary.

The NDIC Special Day was held as part of activities marking the 21st Abuja International Trade Fair, whose theme is “Resilience: Trade, Taxation and the Economy.”

Sunday said the theme was timely, particularly as Nigeria undergoes economic transformation through reforms aimed at building a stronger, more resilient and productive economy in line with the Federal Government’s vision of a $1 trillion economy by 2030.

He commended the Abuja Chamber of Commerce, Industry, Mines and Agriculture for sustaining the trade fair for 21 consecutive years.

The NDIC boss also invited participants at the trade fair to visit the NDIC Pavilion, where officials were available to provide information on deposit insurance, depositor protection, claims processing, financial literacy and other services of the Corporation.

He congratulated the Chamber on the successful hosting of the trade fair and expressed appreciation to royal fathers, guests, exhibitors, participants and members of the media for attending the NDIC Special Day.