The Nigeria Deposit Insurance Corporation (NDIC) on Tuesday issued a warning signal to Nigerians who invest with illegal fund managers, saying it does not insure them.
The Corporation said in a statement that with the recent increase in investment channels arising from innovative products, there has been an increase in illegal fund managers who have been using different platforms soliciting the public to invest their funds with them, promising excessive returns on such investments.
In order to protect unsuspecting depositors, it has become necessary for the NDIC to continue sensitizing the public on the high risk associated with investing funds with illegal funds managers.
Accordingly, as the deposit insurer, the Corporation would like to inform members of the public that contrary to claims by some of these fund managers, the Corporation does not insure investments with them.
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The NDIC insures only deposits of financial institutions licensed by the Central Bank of Nigeria (CBN) to accept deposits from the public.
“To confirm whether a financial institution is covered by the deposit insurance scheme of the NDIC, please visit our website at www.ndic.gov.ng and click on Who We Cover for the complete list. You can also address any other inquiry to the Director, Communication & Public Affairs Department, Nigeria Deposit Insurance Corporation,” the statement signed by Bashir A. Nuhu, director, communication and public affairs department said.
Members of the public are also advised to report any entity suspected to be involved in illegal deposit mobilization to the law enforcement agencies.
