The Nigeria Deposit Insurance Corporation (NDIC) has cautioned Nigerians against investing in Ponzi schemes and unregulated financial platforms, warning that funds lost through such investments are not protected by its deposit insurance scheme.
The warning was contained in an address delivered on behalf of the NDIC Managing Director and Chief Executive, Thompson Sunday, during the corporation’s Special Day at the 2026 Lagos International Trade Fair on Saturday.
The corporation expressed concern over the growing activities of fraudulent investment platforms and advised Nigerians to confirm the regulatory status of financial institutions before entrusting them with their savings.
Mr Sunday explained that the NDIC’s deposit protection mandate covers only financial institutions licensed by the Central Bank of Nigeria (CBN) to receive deposits from the public.
He said although the government was making efforts to tackle the problem, Nigerians also had a responsibility to exercise caution when deciding where to invest their money.
According to him, the NDIC does not provide insurance for funds placed in Ponzi schemes or other unregulated investment platforms, urging members of the public to conduct their financial transactions only through duly licensed institutions.
He also encouraged Nigerians, particularly operators of micro, small and medium-sized enterprises (MSMEs), to use licensed financial institutions, stressing that access to secure banking services was essential for business sustainability and economic development.
The warning follows an earlier advisory issued by the corporation in September, when Mr Sunday cautioned Nigerians against placing their savings with unlicensed fund managers offering unusually high returns.
