The Nigeria Deposit Insurance Corporation (NDIC) has warned the public about the high risk associated with investing funds with illegal fund managers.
This was contained in a statement by its Director, Communication and Public Affairs Department, Mr. Bashir Nuhu.
It said the caution became necessary against the backdrop of recent increase in investment channels arising from innovative products.
The corporation noted that there had been an increase in illegal fund managers who have been using different platforms to woo members of the public to invest their funds with them, while promising excessive returns on such investments.
The corporation said as the deposit insurer, it would like to inform members of the public that contrary to claims by some of these funds managers, the corporation does not insure investments with them.
The statement pointed out that the corporation insures only deposits of financial institutions licenced by the Central Bank of Nigeria (CBN) to accept deposits from the public.
The NDIC urged the public to verify whether a financial institution is covered by the deposit insurance scheme of the NDIC by visiting its website for a complete list of organisations it covers.
The statement further urged the public to address any other inquiry to the corporation as well as report any entity suspected to be involved in illegal deposit mobilisation to the law enforcement agencies.
