By Oluwakemi Kindness
The Nigeria Deposit Insurance Corporation (NDIC) has warned Nigerians against keeping their money in unlicensed financial schemes, particularly those offering unrealistic returns.
The Corporation said the collapse of Ponzi schemes has repeatedly exposed Nigerians to significant financial losses from entrusting their savings to unregulated operators.
The Managing Director/Chief Executive of the NDIC, Thompson Oludare-Sunday, represented by the Director, Information Technology Department, Imade Uhunmwagho, gave the warning on Wednesday at the NDIC Special Day at the 21st Abuja International Trade Fair.
Sunday urged Nigerians to keep their money in licensed and regulated financial institutions and verify investment opportunities 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,” he said.
98% of Depositors Covered
The NDIC boss said the Corporation’s enhanced deposit insurance coverage provides full protection for more than 98 per cent of depositors across insured institutions.
He said the maximum insured limit was increased in 2024 to ₦5 million per depositor for each Deposit Money Bank (DMB) and Mobile Money Operator (MMO).
For Microfinance Banks (MFBs), Primary Mortgage Banks (PMBs) and Payment Service Banks (PSBs), he said the limit was increased to ₦2 million per depositor.
According to him, the enhanced coverage protects households, small businesses and other vulnerable depositors against the immediate consequences of bank failure.
For depositors whose balances exceed the insured limits, Sunday said the NDIC continues to pay liquidation dividends from recoveries made from debts owed to failed institutions and the disposal of their physical assets.
Faster Reimbursement
The NDIC boss said the Corporation had also improved the process of reimbursing depositors of failed banks through technology.
He said the use of the Bank Verification Number (BVN), Single Customer View (SCV), NIBSS infrastructure and other digital solutions had replaced cumbersome manual processes with faster reimbursement.
According to him, verified depositors of failed banks now receive their insured deposits within days of bank closure.
Sunday said the NDIC was also strengthening its role as a risk minimiser, rather than merely paying claims after bank failures.
He said the Corporation was working to identify vulnerabilities early, strengthen safeguards and prevent institutional problems from escalating into wider financial crime.
Financial Literacy
The NDIC boss urged businesses and members of the public to improve their financial literacy and use digital financial services responsibly.
He advised depositors to maintain sound financial practices and seek guidance from relevant regulatory institutions when they require assistance.
He also urged depositors to ensure that their account information is accurate and properly linked to their BVNs to facilitate faster reimbursement where necessary.
Sunday said the NDIC had upgraded its website to provide easier access to information on deposit insurance, claims processing and insured institutions.
The platform also provides access to services for filing claims, checking insured banks, reporting failed banks and accessing frequently asked questions.
Trade Fair Special Day
The NDIC Special Day featured a raffle draw session as part of activities at the 21st Abuja International Trade Fair.
The event was attended by the President of the Abuja Chamber of Commerce, Industry, Mines and Agriculture (ACCI) and the royal father of the occasion, the Etsu of Abaji.
The NDIC also used the occasion to provide visitors with information on deposit insurance, depositor protection, claims processing and financial literacy.
The Corporation urged depositors, creditors and shareholders of closed banks to make full use of its digital platforms when processing their claims.
