NDIC warns investors against illegal funds managers

The Nigeria Deposit Insurance Corporation (NDIC) has warned Nigerian investors to be weary of investing their hard-earned money with illegal fund managers because of the high risk associated with doing so.  

In a release signed by its Director, Communication & Public Affairs Department, Bashir Nuhu, it noted that 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 the public to invest their funds with them, promising excessive returns on such investments.

“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 explained.

It enjoined investors to confirm whether a financial institution is covered by the deposit insurance scheme of the NDIC, they should visit the corporation’s 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,” it added.

It advised investors to report any entity suspected to be involved in illegal deposit mobilization to the law enforcement agencies.