NDIC Warns Nigerians Against Ponzi Schemes, Urges Use of Licensed Banks!

Reported by Marian Opeyemi Fasesan | Sele Media Africa

The Nigeria Deposit Insurance Corporation (NDIC) has issued a fresh warning to Nigerians about the dangers of investing in unlicensed financial institutions and Ponzi schemes. The agency emphasized that only deposits placed in duly licensed banks are insured and protected.

Key Messages from NDIC

• NDIC Managing Director, Bello Hassan, stressed that Nigerians must verify the licensing status of any bank or financial institution before making deposits or investments.
• He warned that many fraudulent schemes lure victims with unrealistic profit promises, only to collapse and leave investors stranded.
• “Funds deposited in illegal entities are not covered by deposit insurance. We urge the public to deal only with CBN-licensed banks and microfinance institutions,” Hassan stated.

NDIC’s Public Awareness Push

• The caution came during the 2025 Financial Literacy and Consumer Protection workshop in Abuja.
• NDIC is intensifying its sensitization campaigns nationwide, educating the public on financial safety, fraud prevention, and the role of deposit insurance.

Background

• Ponzi schemes have flourished in Nigeria over the years, with notable cases such as MMM, MBA Forex, and others leaving thousands of Nigerians in financial ruin.
• The NDIC insures deposits up to ₦500,000 for commercial bank customers and ₦200,000 for microfinance bank depositors.

Citations:

1. NDIC Official Website – www.ndic.gov.ng
2. The Nation – ndic-warns-nigerians-against-ponzi-schemes
3. Premium Times – ndic-advises-public-on-licensed-banks-only

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