The Nigeria Deposit Insurance Corporation (NDIC) has alerted members of the public that investments with fund managers in the country were not covered by any insurance policy, warning that investors should avoid dealing with some of them operating illegally in the country.
A statement issued by the corporation’s Director, Communications and Public Affairs, Mr. Bashir Nuhu, on Monday reflected that with the recent increase in investment channels arising from innovative products, there had been a surge 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 Director maintained that in order to protect unsuspecting depositors, it had become imperative for the corporation to continue sensitizing the public on the high risk associated with investing funds with illegal funds managers.
He clarified that as the financial system 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.
Nuhu also stated that the NDIC insures ONLY deposits of financial institutions licensed by the Central Bank of Nigeria (CBN) to accept deposits from the public.
The Director further expatiated: “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.”
He, therefore, advised members of the public to report any entity suspected to be involved in illegal deposit mobilization to the law enforcement agencies.
