NDIC's Thompson Sunday Warns Against Ponzi Schemes

The Deposit Insurance Corporation (NDIC) has issued a warning to Nigerians regarding the dangers of unlicensed fund managers and Ponzi schemes, highlighting that promises of extraordinary returns can lead to significant financial losses. In an address delivered by Managing Director and Chief Executive Officer Thompson Sunday during the NDIC Special Day at the 21st International Trade Fair on September 30, 2026, he urged citizens to thoroughly investigate investment offers, particularly those lacking regulatory backing.

Sunday expressed concern over the substantial funds that some Nigerians keep outside the formal banking system or entrust to unlicensed operators. He noted that the collapse of Ponzi schemes has caused severe financial and emotional damage, stripping families of their savings and leaving entrepreneurs without necessary capital.

He emphasized the importance of verifying investment promises and the protection available through insured financial institutions, which provide a safety net when an institution fails. The maximum insured amount is ₦5 million for Deposit Money Banks and ₦2 million for Microfinance Banks, covering over 98 percent of depositors.