TheCable

The Nigeria Deposit Insurance Corporation (NDIC) has warned the public against investing with illegal fund managers. 

In a statement on Tuesday, Bashir Nuhu, director, communication and public affairs department, NDIC, said the caution came on the heels of a recent increase in investment channels arising from innovative products.  

The corporation urged the 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 NDIC to continue sensitising the public on the high risk associated with investing funds with illegal funds managers,” the statement reads. 

“Accordingly, as the deposit insurer, the NDIC would like to inform members of the public that contrary to claims by some of these fund managers, the corporation does not insure investments with them.”

According to the statement, the corporation 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 inquiry to the Director, communication & public affairs department, Nigeria Deposit Insurance Corporation,” the statement added. 

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