NDIC warns against investment with illegal fund managers

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NDIC warns against investment with illegal fund managers

NDIC warns against investment with illegal fund managers

Following the rise in the number of illegal investment channels, the Nigeria Deposit Insurance Corporation (NDIC) has warned the public against investing funds with unregistered and illegal fund managers.

The spokesman of NDIC, Bashir Nuhu, urged potential investors to shun such financial institutions no matter how attractive the profits they offer, as such outfits are not covered under the NDIC’s policy.

He said the illegal fund managers were taking advantage of the rise in investment channels to defraud the public by promising them unrealistic 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.

“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,” Nuhu noted.

He added that 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 mobilisation to the law enforcement agencies,” he added.

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