The Nigeria Deposit Insurance Corporation (NDIC) has warned the investing public against subscribing to investments with illegal fund managers, saying that such funds are not insured.
The warning was contained in a statement yesterday by the Director, Communication & Public Affairs Department, Bashir A. Nuhu.
The Corporation said the caution followed 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,” it said.
The NDIC said the advice became necessary to protect unsuspecting depositors as well as to continue sensitizing the public on the high risk associated with investing funds with illegal funds managers.
The statement reads further: “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.
“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 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.
“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 NDIC insures ONLY deposits of financial institutions licensed by the Central Bank of Nigeria (CBN) to accept deposits from the public.
