NDIC warns Nigerians against Ponzi schemes, unlicensed fund managers
By Aboki Forex —
The Nigeria Deposit Insurance Corporation (NDIC) has warned Nigerians not to hand their savings to unlicensed fund managers and Ponzi scheme operators. The corporation said promises of extraordinary returns can end in devastating losses.
NDIC Managing Director and Chief Executive Officer Thompson Sunday gave the warning at the NDIC Special Day during the 21st Abuja International Trade Fair on Wednesday, September 30, 2026.
Verify before you invest
Sunday expressed concern that some Nigerians still keep substantial funds outside the formal banking system or entrust their resources to unlicensed investment operators.
“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.
He said repeated Ponzi scheme collapses had exposed the financial and emotional damage tied to unregulated investments. Such losses can wipe out savings families built over years and leave entrepreneurs without working capital.
Sunday urged Nigerians to pause, ask questions and verify investment promises before transferring funds. The attraction of quick profits should never replace basic checks on an operator’s legitimacy.
Deposit insurance limits
The NDIC chief explained that the corporation provides a safety net when an insured institution fails. Following a coverage increase introduced in 2024, the maximum insured amount rose to ₦5 million per depositor for Deposit Money Banks and Mobile Money Operators.
For Microfinance Banks, Primary Mortgage Banks and Payment Service Banks, the maximum coverage is ₦2 million per depositor.
Sunday said these limits fully cover the balances of more than 98 per cent of bank depositors nationwide.
But deposit insurance limits matter. Depositors with balances above the applicable ceiling receive additional payments through liquidation dividends funded by debt recoveries and asset sales. Such payments depend on recoveries and should not be confused with an immediate guarantee of full repayment.
Faster claims through digital systems
Sunday said the NDIC has adopted digital systems to accelerate payments and reduce reliance on physical verification and paperwork. These include the Single Customer View framework, Bank Verification Numbers and payment infrastructure provided by the Nigeria Inter-Bank Settlement System.
He said the systems enable verified depositors to receive payments within days of a bank closure.
The corporation also unveiled an upgraded website featuring tools for submitting claims, checking bank statuses and accessing guidance through an AI-powered virtual assistant.
Sunday urged customers to keep their account information and BVNs consistent across institutions to support seamless verification.
He linked depositor confidence to Nigeria’s ambition of becoming a $1 trillion economy by 2030, stressing that protecting savings remains essential to financial stability and sustainable business growth.
Official records identify six commercial bank licence revocations from 2010 onwards, including Afribank, Bank PHB, African International Bank, Skye Bank and Heritage Bank. Hundreds of smaller lenders also lost their licences during the period.
For Nigerian savers and small businesses, the NDIC message is simple: confirm an operator is licensed and its products are covered before moving money.