The Nigeria Deposit Insurance Corporation (NDIC) has warned Nigerians against investing in Ponzi schemes and unregulated financial platforms, saying money lost through such investments is not covered by its deposit insurance scheme.

The warning was contained in an address prepared by the NDIC Managing Director and Chief Executive, Thompson Sunday, for the corporation’s Special Day at the 2026 Lagos International Trade Fair on Saturday.

The corporation expressed concern over the increasing activities of fraudulent investment platforms, urging Nigerians to verify the regulatory status of financial institutions before committing their savings.

Mr Sunday said the NDIC’s responsibility to protect depositors applies only to financial institutions licensed by the Central Bank of Nigeria (CBN) to accept deposits from the public.

“While the government continues to address this problem, members of the public must also be careful about where they place their hard-earned money. It is important to state that the NDIC protects deposits, but only in financial institutions that are fully licensed by the CBN to collect deposits from the public. 

“The NDIC does not cover funds invested in Ponzi schemes and other unregulated investment platforms. Nigerians are, therefore, encouraged to patronise only duly licensed financial institutions,”he said.

He urged Nigerians, particularly operators of micro, small and medium enterprises, to patronise licensed financial institutions, noting that access to safe banking services is important for business survival and economic growth.

The warning reinforces an earlier appeal by the corporation in September, when Mr Sunday cautioned Nigerians against entrusting their savings to unlicensed fund managers promising unusually high returns.