NDIC Urges Nigerians to Keep Funds in Licensed Banks, Warns Against Unlicensed Fund Managers
NDIC Urges Nigerians to Keep Funds in Licensed Banks, Warns Against Unlicensed Fund Managers
Bisi Akingbade
Nigeria Deposit Insurance Corporation, NDIC, has urged Nigerians to keep their funds in licensed and regulated financial institutions, warning against entrusting hard-earned money to unregulated investment schemes and operators offering unrealistic returns.
The Managing Director/Chief Executive of the NDIC, Mr. Thompson Oludare Sunday, gave the advice on Wednesday, September 30, 2026, while delivering the keynote address at the Corporation’s Special Day during the 21st Abuja International Trade Fair, organised by the Abuja Chamber of Commerce, Industry, Mines and Agriculture.
Sunday said the theme of the 2026 Trade Fair, “Resilience: Trade, Taxation and the Economy,” was timely, stressing that a resilient economy requires a safe, sound and trusted financial system capable of protecting deposits, facilitating payments and supporting businesses with access to credit for investment and expansion.
He said the NDIC, as a critical pillar of Nigeria’s financial safety-net architecture, has continued to strengthen depositor confidence through deposit insurance, bank supervision in collaboration with the Central Bank of Nigeria, failure resolution and bank liquidation.
According to him, the Corporation’s enhancement of deposit insurance coverage in 2024, which raised the maximum insured limit to ₦5 million per depositor per Deposit Money Bank and Mobile Money Operator, and ₦2 million for Microfinance Banks, Primary Mortgage Banks and Payment Service Banks, now provides full coverage for more than 98 percent of depositors across insured institutions.
The NDIC boss noted that the Corporation has also transformed the reimbursement process through the deployment of technology, including the Bank Verification Number (BVN), Single Customer View, SCV, NIBSS infrastructure and other digital solutions, enabling verified depositors of failed banks to receive their insured deposits within days of closure.
He said the NDIC was evolving beyond its traditional role of paying claims after bank failures to becoming a “Risk Minimizer” capable of identifying vulnerabilities early, strengthening safeguards and preventing institutional problems from escalating into systemic crises.
Sunday disclosed that the Corporation has strengthened its institutional framework through initiatives including Risk-Based Supervision, an enhanced Differential Premium Assessment System, the Single Customer View Framework, distress-resolution systems and the Bank Liquidation Management System, alongside stronger collaboration with the CBN and other financial safety-net institutions.
He cautioned Nigerians against the growing attraction of Ponzi schemes and unlicensed fund managers, stressing that the collapse of such schemes has repeatedly resulted in significant financial and emotional losses.
He advised members of the public to verify the status of financial institutions and investment operators before committing their funds, particularly where promised returns appear unusually high.
The NDIC Managing Director also highlighted the Corporation’s upgraded website, launched on September 19, 2026, describing it as a one-stop digital gateway for depositors and other stakeholders. The platform provides information on deposit insurance coverage, claims processing and NDIC-insured institutions, as well as quick access to services including File Claim, Check Banks, Report Failed Bank and FAQs.
He encouraged depositors, creditors and shareholders of closed banks to make greater use of the Corporation’s digital platforms, noting that accurate account information and proper linkage of bank accounts to BVNs would further facilitate speedy reimbursement.
Sunday further emphasised the importance of financial literacy, urging businesses and members of the public to adopt sound financial practices, use digital financial services responsibly and seek guidance from relevant regulatory institutions whenever necessary.
He invited participants at the Trade Fair to visit the NDIC Pavilion, where officials are providing information on deposit insurance, depositor protection, claims processing and financial literacy.
He congratulated the Abuja Chamber of Commerce, Industry, Mines and Agriculture on the 21st edition of the Trade Fair and appreciated traditional rulers, exhibitors, participants, guests and members of the media for attending the NDIC Special Day.