Investment with fund managers not covered by us, NDIC warns

By Oluwaseun Sonde

The Nigeria Deposit Insurance Corporation (NDIC) has warned members of the public not to invest in illegal fund managers who are soliciting for investment, declared that these fund managers are not covered by the Corporation.

The Corporation made this known in a statement released by the Director, Communication and Public Affairs, Bashir A. Nuhu on Tuesday.

Which stated that, "with the recent increase in investment channels arising from innovative products, there has been an increase in illegal fund managers who have been using different platforms soliciting public to invest their funds with them, promising excessive returns on such investments.

"In order to protect unsuspecting depositors, it has become necessary for the Nigeria Deposit Insurance Corporation (NDIC) to continue sensitizing the public on the high risk associated with investing funds with illegal funds managers".

It further said that as the deposit insurer, the Corporation would like to inform the public accordingly, that contrary to claims by some of these funds managers, the NDIC does not insure investments with them.

NDIC made it clear that it only insures deposits of financial institutions licensed by the Central Bank of Nigeria (CBN) to accept deposits from the public.

While asked the public to confirm whether a financial institution is covered by the deposit insurance scheme of the NDIC, by visiting its 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 and 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 mobilization to the law enforcement agencies", it added.