Despite promises from several of the operators, the Nigeria Deposit Insurance Corporation (NDIC) issued a warning Wednesday that it does not protect investments with fund managers.
The Corporation said in a news release issued under the name Bashir Nuhu, Director, Communication and Public Affairs Department, that the clarification was required to raise awareness of the significant risks associated with dealing with unlawful fund managers.
In recent years, the business of investing with fund managers has exploded, with many boasting tempting monthly returns on such products. A handful of those who made promises do follow through, but the bulk run off with the money from investors, leaving a path of pain and regret.
The NDIC asserted that it had a duty to defend depositors of banks with licenses rather than those who succumb to the deception of unauthorized fund managers.
The NDIC would want to let the public know that, despite what some of these fund managers may have claimed, the Corporation does not insure investments with them.
According to the statement, “The NDIC only guarantees deposits of financial institutions licensed by the Central Bank of Nigeria (CBN) to take deposits from the public.”
Additionally, it recommended the general population to alert law enforcement authorities about any firm suspected of participating in unlawful deposit mobilization.