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NDIC warns Nigerians, says it doesn’t cover investments by fund managers

The Nigeria Deposit Insurance Corporation (NDIC) has said it doesn’t cover investment by fund managers, even as it advised Nigerians to be weary of those promoting investment schemes promising huge returns.

The corporation in a statement on Tuesday by Bashir A. Nuhu, its Director, Communication & Public Affairs Department, noted that the clarification became necessary in the wake of the proliferation of illegal funds managers in the country.

“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 public to invest their funds with them, promising excessive returns on such investments,” the statement said.

“In order to protect unsuspecting depositors, it has become necessary for the Nigeria Deposit Insurance Corporation (NDIC) to continue sensitizing 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.

“The NDIC 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, please visit our website at www.ndic.gov.ng and click on Who We Cover for the complete list. You can also address any other enquiry to the Director, Communication & Public Affairs Department, Nigeria Deposit Insurance Corporation.

“Members of the public are also advised to report any entity suspected to be involved in illegal deposit mobilization to the law enforcement agencies.”

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