NDIC blows whistle on illegal money schemes - Punch Newspapers

The Nigeria Deposit Insurance Corporation has raised the alarm on the rapid spread of illegal money schemes across the country, cautioning citizens against putting their hard-earned money in unregulated institutions or illegal fund operators. The Managing Director and Chief Executive Officer of the Corporation, Thompson Sunday, delivered the warning on Wednesday in Abuja during the NDIC Special Day at the 21st Abuja International Trade Fair. Speaking on the overarching theme of the fair, “Resilience: Trade, Taxation and the Economy,” the NDIC boss emphasised that safeguarding individual savings and ensuring a stable banking climate are fundamental to achieving the Federal Government’s target of a $1tn economy by 2030. Addressing participants and key business stakeholders at the event, Sunday made a direct appeal to the public to avoid high-yield financial traps that lack regulatory backing.  He expressed grave concern over how unsuspecting citizens continue to fall victim to speculative investment setups that promise unsustainable returns.See more Punch stories on Google.Add Punch on Google “There are still Nigerians who keep substantial funds outside the formal banking system or entrust their savings to unlicensed fund managers, attracted by promises of extraordinary and unrealistic returns,” he stated. The NDIC chief noted that the consequences of these choices are often disastrous, pointing out that “the proliferation and collapse of Ponzi schemes have demonstrated, time and again, the enormous financial and emotional cost of placing hard-earned resources in unregulated schemes.” He advised citizens to exercise strict caution, adding that “if an investment promise sounds too good to be true, Nigerians should pause, ask questions and verify before committing their money.” In contrast to the grave risks of illicit schemes, Sunday highlighted the safety measures provided by licensed banking institutions, noting that the NDIC acts as a critical safety-net pillar to safeguard customer deposits. He pointed out that following a significant policy enhancement in 2024, maximum deposit insurance coverage limits were raised to N5m per depositor for Deposit Money Banks and Mobile Money Operators, alongside N2m per depositor for Microfinance Banks, Primary Mortgage Banks, and Payment Service Banks. According to the NDIC MD, this enhancement guarantees 100 per cent deposit coverage for more than 98 per cent of bank depositors nationwide, shielding households and small enterprises from the fallout of bank insolvencies. He added that for account balances above the insured limits, the NDIC steadily distributes liquidation dividends derived from debt recoveries and asset disposals so that no depositor loses faith in the financial system. To streamline depositor protection, the NDIC boss revealed that the Corporation has fully embraced modern digital systems to deliver faster claim payments, shifting away from slow, paper-heavy physical verifications. By leveraging tools like the Single Customer View framework, Bank Verification Numbers, and NIBSS payment infrastructure, verified depositors now receive payments within days of a bank closure. Furthermore, Sunday announced the launch of an upgraded interactive website, featuring a digital portal complete with a one-click Quick Action Bar for filing claims and checking bank statuses, as well as an AI-powered virtual assistant designed to offer real-time guidance to the public. He encouraged depositors to ensure their account records and BVNs remain properly synchronized across institutions to enable seamless background verifications. Jide Ajia Jide, a seasoned journalist with over 12-year experience, reports business-related stories

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