Abuja: The Nigeria Deposit Insurance Corporation (NDIC) has advised Nigerians to be vigilant against Ponzi schemes and other fraudulent investment platforms. The Managing Director of NDIC, Mr. Thompson Sunday, made this statement at the corporation’s special day during the 20th Edition of the Abuja International Trade Fair, organized by the Abuja Chamber of Commerce and Industry (ACCI).
According to News Agency of Nigeria, Sunday, who was represented by Mrs. Bimpe Akande, Director of Performance Management Department at NDIC, urged citizens to ensure their funds are placed only in Central Bank of Nigeria (CBN) licensed banks. He emphasized that only funds in CBN licensed banks are covered by deposit insurance provided by the corporation. He highlighted the importance of vigilance in protecting hard-earned savings and detailed NDIC’s role in safeguarding depositors’ funds and fortifying the financial system over the past three decades.
Sunday outlined that the NDIC’s primary objectives include insuring deposits in licensed banks, supervising financial institutions, managing distressed banks, and ensuring a smooth resolution process in the event of bank failures. He stated that NDIC, in collaboration with the CBN, is dedicated to maintaining stability in the banking sector, enforcing compliance with banking regulations, and exercising effective oversight over insured deposit-taking institutions. The corporation’s mission, embodied in the tagline ‘Protecting your bank deposits,’ aims to promote financial inclusion and reassure Nigerians about the security of their savings.
Significant progress has been made in protecting depositors’ funds through an increase in the maximum deposit insurance coverage, which broadened protection across various licensed banks. The NDIC insures depositors of Deposit Money Banks (DMBs), Mobile Money Operators, and Non-Interest Banks up to a coverage limit of five million naira. Depositors of Payment Service Banks (PSBs), Microfinance Banks (MFBs), and Primary Mortgage Banks (PMBs) are insured up to two million naira. This enhanced coverage ensures that approximately 98.98 per cent of total depositors in DMBs, 99.27 per cent in MFBs, 99.34 per cent in PMBs, and 99.99 per cent in PSBs are protected.
The President of ACCI, Chief Emeka Obegolu, stated that the theme of the fair, ‘Sustainability: Consumption, Incentives and Taxation,’ aligns with the mandate of the NDIC. Represented by Chief Agabaidu Jideani, Director-General of ACCI, Obegolu noted that NDIC provides the stability required for businesses, including Small and Medium Enterprises (SMEs) represented by the ACCI, to access financial services, thrive in operations, and expand into export markets. He commended NDIC’s initiatives in advancing financial inclusion through digital innovations and a strong consumer protection framework, highlighting its responsiveness to the evolving dynamics of Nigeria’s financial landscape.