Avoid Ponzi Scams, losses, keep money only in CBN-Licensed Banks – NDIC
The Nigeria Deposit Insurance Corporation (NDIC) is sounding the alarm: keep your money only in CBN-licensed banks. Anything else—Ponzi apps, “investment clubs,” unlicensed wallets—is outside deposit insurance and puts your savings at risk. Speaking at the Abuja International Trade Fair, NDIC leadership reaffirmed its core mandate: protecting insured deposits, stabilising banks, and resolving failures without panic.
What NDIC Is Saying—Plainly
“Place funds only in CBN-licensed banks. That is what deposit insurance covers.”
NDIC’s priorities remain:
- Insure deposits in licensed institutions
- Supervise insured financial institutions with the CBN
- Manage distress and resolve bank failures methodically
- Promote inclusion by reassuring the public that insured deposits are protected
How Much of Your Money Is Insured?
Coverage limits (per depositor, per bank):
- ₦5,000,000 — Deposit Money Banks (DMBs), Mobile Money Operators (MMOs), Non-Interest Banks
- ₦2,000,000 — Payment Service Banks (PSBs), Microfinance Banks (MFBs), Primary Mortgage Banks (PMBs)
Protection reach:
- DMBs: ≈98.98% of depositors fully covered
- MFBs: ≈99.27% fully covered
- PMBs: ≈99.34% fully covered
- PSBs: ≈99.99% fully covered
Translation: The overwhelming majority of everyday savers are fully protected within these limits.
What Deposit Insurance Does Not Cover
- Ponzi schemes and “high-yield” investment programs
- Unlicensed investment apps, crypto wallets/exchanges, or foreign HYIPs
- Informal savings circles (co-ops, esusu/ajo) not licensed by the CBN
- Shares, bonds, or funds (these are investments, not insured deposits)
- Cash with “agents” or “middlemen” outside regulated banking channels
If the entity isn’t a CBN-licensed deposit-taking institution, NDIC coverage does not apply.
60-Second Safety Checklist (Before You Transfer a Kobo)
- License Check: Confirm the institution on CBN’s public register (name, license type, status).
- NDIC Badge: Look for NDIC insurance disclosure—and verify the bank falls into a covered category.
- Too-Good-To-Be-True Yields? They usually are. Treat “guaranteed double-digit monthly returns” as a red flag.
- Custody & Access: Are your funds in a named bank account with a clear statement trail? If not, stop.
- Paper Trail: Keep KYC, account numbers, receipts, and any mandates—these matter in payouts and claims.
If a Bank Fails: What Happens to Your Money?
NDIC Resolution Playbook:
- Supervision → Intervention (as needed) → Payout or transfer of insured deposits
- Insured amounts are paid per depositor, per bank up to the relevant limit
- Maintain updated contact details and valid ID to speed payout/transfer
Tip: Spreading very large balances across multiple licensed banks can help maximise insured coverage.
Ponzi Red Flags (Cut Out & Keep)
- No license or vague registration claims
- Unverifiable “guarantees” and bonus-for-recruitment models
- Pressure tactics (“offer closes tonight”)
- No audited financials, no credible board or governance
- Funds pooled into “projects” with no escrow or trustee
Why This Matters for Households & SMEs
- Protect capital: One bad transfer can wipe out years of savings.
- Stability equals access: A trusted, insured system keeps credit lines and payments functioning for SMEs.
- Lower risk, lower cost: Confidence reduces systemic stress, keeping the cost of funds in check.
BRANDECONOMY Take
The cheapest “return” you’ll ever earn is not losing your principal. NDIC’s update is the clearest rule in a noisy market: if it isn’t a CBN-licensed bank, it isn’t insured. Nigerians should pair prudence (license checks, documentation) with discipline (avoid Ponzi yields). That’s how households and SMEs stay solvent, even in volatile cycles.Bottom line:Bank where you’re insured. Everything else is speculation—often dressed up as “opportunity.”
