By Mariam Abeeb
The Nigeria Deposit Insurance Corporation (NDIC) has warned Nigerians against entrusting their savings to unlicensed fund managers and investment schemes promising unrealistic returns, urging the public to keep their money in licensed and regulated financial institutions.
The Managing Director/Chief Executive of NDIC, Mr Thompson Oludare Sunday, gave the warning during 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 proliferation and collapse of Ponzi schemes had repeatedly exposed Nigerians to significant financial losses, stressing the need for depositors and investors to verify the legitimacy of financial institutions before committing their funds.
He cautioned that promises of extraordinary returns should prompt members of the public to ask questions and conduct proper checks before investing their hard-earned money.
The NDIC boss said the corporation’s depositor protection mandate was designed to strengthen confidence in the banking system, adding that the public could reduce their exposure to financial risks by using institutions licensed and regulated by the relevant authorities.
He disclosed that the NDIC had enhanced its deposit insurance coverage, providing protection of up to N5 million per depositor in each Deposit Money Bank and Mobile Money Operator, and N2 million per depositor in Microfinance Banks, Primary Mortgage Banks and Payment Service Banks.
According to him, the enhanced coverage provides full protection for more than 98 per cent of depositors across insured institutions, helping to shield households, small businesses and vulnerable customers from the immediate impact of bank failures.
Sunday explained that depositors whose balances exceed the insured limits could receive liquidation dividends from recoveries made through the collection of debts owed to failed banks and the sale of their physical assets.
He said the corporation was also deploying technology to make the reimbursement process faster and more convenient, with verified depositors of failed banks now able to receive their insured deposits within days of a bank’s closure.
The technologies include the Bank Verification Number, Single Customer View framework and Nigeria Inter-Bank Settlement System infrastructure, which have helped reduce reliance on manual processes.
The NDIC chief executive urged depositors to ensure that their bank account details were accurate, consistent across institutions and properly linked to their BVNs to facilitate prompt reimbursement when necessary.
He also encouraged Nigerians to take advantage of the corporation’s upgraded website, launched on September 19, 2026, to access information about insured institutions, deposit insurance coverage and claims processing.
The website, www.ndic.gov.ng, features digital services for filing claims, checking insured banks, reporting failed banks and accessing frequently asked questions. It also incorporates an artificial intelligence-powered virtual assistant to improve access to information.
Sunday, however, stressed that regulatory oversight and technology must be complemented by improved financial literacy, urging businesses and individuals to adopt sound financial practices and seek guidance from relevant regulatory institutions.
He said the NDIC was strengthening its role as a risk minimiser through initiatives such as risk-based supervision, an enhanced Differential Premium Assessment System and closer collaboration with the Central Bank of Nigeria.
The initiatives, he added, were aimed at identifying vulnerabilities early and preventing problems within individual financial institutions from escalating into wider threats to the banking system.
The NDIC managing director said a stable and trusted financial system was essential to protecting businesses’ working capital, facilitating payments and supporting access to credit, particularly as Nigeria pursues its ambition of building a $1 trillion economy by 2030.
He urged participants at the trade fair to visit the NDIC pavilion for information on deposit insurance, financial literacy, depositor protection and the corporation’s services.
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