By Anita Dennis
The Nigeria Deposit Insurance Corporation (NDIC) has issued a fresh warning to Nigerians: keep your money only in Central Bank of Nigeria (CBN)-licensed banks and steer clear of Ponzi schemes or risk losing your savings.
Managing Director (MD)/Chief Executive, Dr. Oludare Sunday, speaking at the NDIC Special Day during the 20th Abuja International Trade Fair, said that the corporation remains committed to safeguarding depositors but cannot protect funds placed in unregulated institutions.
“Always ensure your funds are placed only in CBN-licensed banks, all of which are covered by NDIC insurance,” Dr. Sunday urged. “This vigilance is crucial to protecting your hard-earned savings.”
Guarding Against Fraudulent Schemes
The NDIC boss, represented by Director of Performance Management, Olabimpe Akande, cautioned that fraudulent investment platforms and Ponzi schemes continue to lure unsuspecting Nigerians with promises of unrealistic returns. He stressed that only licensed banks and insured payment platforms fall under the corporation’s protective cover.
The reminder comes as more Nigerians embrace digital finance, where unregulated fintechs and informal savings platforms have flourished. While technology is reshaping financial services, Dr. Sunday said, “traditional banks continue to play a vital role, and regulatory frameworks have been strengthened to ensure compliance and stability.”
How Much Protection Do Depositors Have?
Currently, NDIC insures deposits up to N5 million for Deposit Money Banks (DMBs) and Non-Interest Banks, while accounts in Payment Service Banks, Microfinance Banks (MFBs), and Primary Mortgage Banks (PMBs) are insured up to N2 million.
This coverage, according to the NDIC, secures nearly all customers: 98.98 percent in DMBs, 99.27 percent in microfinance banks, 99.34 percent in PMBs, and an extraordinary 99.99 percent in Payment Service Banks.
“This demonstrates our unwavering commitment to protecting depositors across the financial system,” Dr. Sunday said.
Lessons From Heritage Bank’s Collapse
To highlight its capacity, the NDIC referenced the June 2024 revocation of Heritage Bank’s licence. Within days, the corporation reimbursed depositors using the Bank Verification Number system to trace alternate accounts. Those with balances above N5 million first received the insured amount, while further payments were made through liquidation dividends, payouts from the sale of the bank’s assets and recovered debts.
The first tranche of liquidation dividends began in April 2025 and continues as more recoveries are made. “This approach reinforces confidence in our ability to protect depositors even in the event of failure,” Dr. Sunday noted.
The Bigger Picture
For over three decades, the NDIC has not only insured deposits but also supervised banks, managed distressed institutions, and resolved failed banks, all with the aim of maintaining financial stability. Working with the CBN, it has strengthened compliance and oversight while promoting financial inclusion.
“Our mission, embodied in the tagline ‘Protecting your bank deposits’, is to reassure Nigerians that their savings are safe in the formal banking system,” Sunday said.
As more Nigerians explore new digital platforms and alternative investment options, the NDIC’s caution is clear: when in doubt, verify licensing – and protect your money.
