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Investment with fund managers not covered by NDIC, says Corporation

By Guardian Nigeria
03 August 2022   |   5:35 am
The Nigeria Deposit Insurance Corporation (NDIC), yesterday, warned that it does not cover investments with fund managers, notwithstanding assurances by many of the operators.

NDIC

The Nigeria Deposit Insurance Corporation (NDIC), yesterday, warned that it does not cover investments with fund managers, notwithstanding assurances by many of the operators.

In a press statement signed by the Director, Communication and Public Affairs Department, Bashir Nuhu, the Corporation said the clarification became necessary to sensitise the high risks involved in investing with illegal fund managers.

Investment with fund managers has become a lush business in recent years with many promising mouthwatering monthly returns on such funds. While a few fulfill their promises, the majority flee with investors’ funds, leaving behind a trail of agony and regrets.

NDIC said it had a responsibility to protect depositors of licensed banks and not those who give in to the deceits of illegal fund managers.

“As the deposit insurer, the NDIC would like to inform members of the public that contrary to claims by some of these fund managers, the Corporation does not insure investments with them.

“The NDIC insures only deposits of financial institutions licensed by the Central Bank of Nigeria (CBN) to accept deposits from the public,” the statement stated.

It also advised members of the public to report any entity suspected to be involved in illegal deposit mobilisation to the law enforcement agencies.

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