The Nigeria Deposit Insurance Corporation (NDIC) on Thursday educated operators of Micro, Small and Medium Scale Enterprises (MSMES) at the ongoing 2021 Edo Trade Fair in Benin on the dangers of investing in Ponzi schemes.
Mr Bello Hassan, Managing Director/Chief Executive, NDIC, said that Ponzi schemes and illegal fund managers were not licensed by the Central Bank of Nigeria (CBN) as deposit taking institutions and as such not covered by the NDIC deposit insurance.
“MSMEs should be careful when operators of Ponzi schemes promise to give them mouth-watering investment opportunities.
“Don’t listen to them and don’t invest your money in their activities because they are not insured by NDIC and you can’t get your money back when they fold up,” he said.
Hassan, represented by Mr Udofot Ukpong, Senior Manager NDIC Benin Zonal office, said that the corporation was focused on the protection of depositors especially small and less sophisticated ones against the risk of investment failure.
He said “The corporation makes use of trade fairs to promote financial literacy among inclusion among all segments of the populace depositors and other stakeholders.
“NDIC has continued to strive for a sound, safe and stable financial system which is pivotal for sustainable economic growth.”
He commended organisers of the fair, saying it had provided a platform for MSMEs to show case their products and services as well as explore opportunities for expansion.
In her remarks, Mrs Aina Omo-Ojeonu, President of the Benin Chamber of Commerce, Industry, Mines and Agriculture, commended NDIC for the public enlightenment on its activities.
“Before now a lot of people did not know what NDIC was about, but your presence has changed the narrative.
“It makes us confident that there is an organisation that is taking care of our money in the deposit money banks,” Omo-Ojeonu said.