Investment with Fund Managers Uninsured, NDIC Warns

The Nigeria Deposit Insurance Corporation (NDIC) has warned the general public to desist from investing funds with illegal funds managers as it does not insure investments with them.

The NDIC stated that it “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, it advised those concerned to “visit our website at www.ndic.gov.ng and click on Who We Cover for the complete list”, stressing that “you can also address any other enquiry to the Director, Communication & Public Affairs Department, Nigeria Deposit Insurance Corporation”.

This is contained in a statement issued on Tuesday by Bashir A. Nuhu, Director, Communication & Public Affairs Department.

According to him, “in order to protect unsuspecting depositors, it has become necessary for the Nigeria Deposit Insurance Corporation (NDIC) to continue sensitising the public on the high risk associated with investing funds with illegal funds managers.

“Accordingly, as the deposit insurer, the NDIC would like to inform members of the public that contrary to claims by some of these funds managers, the Corporation does not insure investments with them.”

He advised members of the public to report any entity suspected to be involved in illegal deposit mobilization to the law enforcement agencies.

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.

August 02, 2022