The Nigeria Deposit Corporation (NDIC) has cautioned Nigerians against patronising fund managers that are not under its safety net.
NDIC gave the caution in a statement issued by its Director of Communication & Public Affairs Department, Bashir A. Nuhu, Tuesday, August 2, 2022 in Abuja.
The Corporation said, contrary to the claims by some of the funds managers, it does not insure investments with them, adding that it insures only deposits of financial institutions licensed by the Central Bank of Nigeria (CBN) to accept deposits from the public.
It however, urges Nigerians to confirm from its website to know whether a financial institution was covered by the deposit insurance scheme of the NDIC.
The statement read in part: “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 successful investments.
“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 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”, the statement said.