NDIC Cautions Nigerians on Unlicensed Investment Schemes, Promises Faster Payouts
The Nigeria Deposit Insurance Corporation (NDIC) has issued a warning to Nigerians against putting money into unregulated financial schemes, while assuring depositors of quicker claims settlement and broader insurance protection.
The corporation's Managing Director and Chief Executive, Thompson Oludare Sunday, delivered the caution on Wednesday, September 30, 2026, at the NDIC's special day during the 21st Abuja International Trade Fair.
Sunday advised Nigerians to entrust their funds only to licensed financial institutions. He noted that unlicensed fund managers often dangle unrealistic returns, which can lead investors into serious financial harm.
According to him, the recurring emergence and eventual collapse of Ponzi schemes have shown time and again the financial and emotional damage that comes from handing savings to unregulated operators. He urged the public to be wary of investment offers promising abnormally high returns without proper verification.
"If an investment promise sounds too good to be true, Nigerians should pause, ask questions and verify before committing their money," he said.
He further warned that dealing with unlicensed fund managers could expose Nigerians to crippling financial losses.
Sunday also called on individuals and businesses to strengthen their financial literacy and to use digital financial services responsibly.
The NDIC chief stated that the corporation is reinforcing depositor protection through wider insurance coverage, technology-based reimbursement, and tighter oversight of insured financial institutions.
He revealed that the improved deposit insurance coverage introduced in 2024 fully protects more than 98% of depositors in insured institutions.
On claims processing, Sunday said the NDIC has adopted technology-driven measures to cut delays in paying depositors of failed banks and to enhance supervision of insured institutions.
He explained that the corporation has abandoned its old cumbersome manual reimbursement approach by deploying Bank Verification Numbers (BVN), the Single Customer View framework, and infrastructure from the Nigeria Inter-Bank Settlement System (NIBSS).
As a result, he said, verified depositors of failed banks now receive their insured funds within days after closure.
The NDIC has also bolstered its risk-minimisation framework through risk-based supervision, an enhanced differential premium assessment system, and a Bank Liquidation Management System.
In addition, Sunday announced that the NDIC unveiled an upgraded website on September 19, 2026. The site includes automated claims-processing tools, a directory of insured institutions, and an artificial intelligence-powered virtual assistant.
He advised depositors to make sure their account details are correct and always linked to their BVNs to enable faster claims processing.
Under the revised insurance limits, depositors in Deposit Money Banks (DMBs) and Mobile Money Operators (MMOs) are covered up to N5 million per depositor.
Customers of Microfinance Banks (MFBs), Primary Mortgage Banks (PMBs), and Payment Service Banks (PSBs) are insured up to N2 million.
The higher limits widen the financial safety net for households, small businesses, and other depositors should a financial institution fail.
For customers whose balances go beyond the insured limits, the NDIC pays extra liquidation dividends from recoveries obtained through debt collection and the sale of failed institutions' assets.
The value of these arrangements was illustrated by the collapse of Heritage Bank in June 2024.
The NDIC paid 82.36% of the bank's insured deposits during the initial reimbursement exercise, reaching that milestone four days after the bank's closure through BVN-enabled payments.
The NDIC has repeatedly cautioned that funds placed with unlicensed investment operators do not enjoy deposit insurance cover. Its latest intervention underscores the need to use regulated financial institutions and to verify investment opportunities before releasing funds.
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