NDIC Warns Nigerians Against Ponzi Schemes, Unregulated Investment Platforms

The Nigeria Deposit Insurance Corporation (NDIC) has warned Nigerians against investing their money in Ponzi schemes and unregulated investment platforms, stressing that funds deposited with such operators are not protected by deposit insurance.

The corporation urged individuals, businesses and other investors to patronise only financial institutions licensed by the Central Bank of Nigeria (CBN) to avoid losing their funds to fraudulent investment operators.

The Managing Director and Chief Executive Officer of NDIC, Mr Thompson Oludare Sunday, gave the warning during the corporation’s Special Day at the 2026 Lagos International Trade Fair, organised by the Lagos Chamber of Commerce and Industry (LCCI).

Sunday, who was represented by the Director of the corporation’s Assets Management Department, Mr Oluyinka Ogungbemi, described the increasing activities of Ponzi schemes and fraudulent investment platforms as a major concern to financial regulators.

He explained that the NDIC’s deposit insurance protection did not extend to funds invested in Ponzi schemes or other unregulated financial platforms, noting that operators of such schemes were neither licensed by the CBN nor insured by the corporation.

He advised Nigerians to verify the regulatory status of financial institutions before entrusting them with their money.

“Before you keep your funds in any financial institution, ensure that the institution is licensed by the Central Bank. When you visit the institution, look for the logo of the NDIC,” he said.

The NDIC chief also highlighted the vulnerability of small businesses to financial fraud, stressing that access to safe and reliable financial services remained essential to job creation, business sustainability and economic growth.

He further raised concerns over the growing exposure of Nigerians to cybercrime and financial fraud following the rapid expansion of digital banking and financial technology services.

While acknowledging that technological innovations had improved access to financial services, Sunday warned that they had also created new opportunities for cybercriminals to exploit unsuspecting users.

He consequently urged Nigerians to safeguard their Bank Verification Numbers (BVNs), Personal Identification Numbers (PINs), passwords and One-Time Passwords (OTPs), warning against disclosing such confidential information to unauthorised persons.

Meanwhile, the President and Chairman of Council of the LCCI, Engr. Leye Kupoluyi, described the NDIC as a critical pillar of confidence in Nigeria’s financial system, noting that deposit insurance protection encouraged public trust and strengthened economic activities.

According to him, protecting depositors’ funds helps sustain confidence in the banking system, retain capital within the economy and provide financial institutions with the capacity to support businesses and create employment opportunities.

Kupoluyi observed that the rapid adoption of digital banking and financial technology had transformed business operations and expanded financial inclusion but warned that the development had also increased exposure to cyber threats and data breaches.

He commended the NDIC and the Central Bank of Nigeria for their efforts to strengthen the country’s financial ecosystem and respond to emerging risks associated with digital transactions.

On the stability of the banking sector, Sunday said the recently concluded bank recapitalisation programme had strengthened financial institutions and improved their capacity to withstand economic shocks.

He added that the stronger capital base of Nigerian banks would better position them to support President Bola Tinubu’s ambition of building a $1tn economy by 2030.

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