Beware Of Illegal Fund Managers – NDIC Tells Investors

The Nigeria Deposit Insurance Corporation, NDIC, has said it  insures only deposits of financial institutions licensed by the Central Bank of Nigeria (CBN) to accept deposits from the public. 

NDIC said the clarification became necessary with the recent increase in investment channels arising from innovative products and 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.

“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,” it stated.

According to NDIC to confirm whether a financial institution is covered by the deposit insurance scheme of the NDIC,  visit the website at www.ndic.gov.ng and click on Who We Cover for the complete list.

It also advised that complains and any other enquiry to be directed 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.”