THE Nigeria Deposit Insurance Corporation, NDIC, has warned Nigerians against patronising various ponzi schemes and other forms of digital and block-chain currencies currently in vogue in the country. The agency insisted that the schemes were neither authorised by the Central Bank of Nigeria, CBN, nor insured by the NDIC.

Umaru Ibrahim, managing director, NDIC, who spoke at the corporation’s special day at the ongoing 28th Enugu International Trade Fair on Thursday, April 6, expressed dismay that ponzi schemes have been seen as investment opportunities and platforms for easy money by unsuspecting members of the public.

Umaru, who was represented by Nicholas Ayuba, Enugu Zonal Controller, said the schemes have not only appeared in form of virtual and digital currencies in the nation’s financial landscape, they have also attracted the media and regulatory attention.

As a result of the disturbing developments, Umaru said a study on the virtual and digital currencies for the purpose of consumer protection, financial education and in the overall interest of the nation’s economic development had been commissioned by the regulatory authorities.

The study, according to him, is expected to come up with legal and regulatory framework for the acceptance of the schemes in currency and banking regulations, adding that it had become important for stakeholders to partner with NDIC in discharging its core mandate of depositor protection.

He also raised alarm at the activities of some cooperative societies which had gone beyond their primary mandate of accepting contributions from their registered members, noting that the cooperative societies were not established to mobilise funds from none members. He therefore urged non-members to desist from patronising them as they are neither licensed as deposit taking financial institutions nor insured by the NDIC.

He also drew the attention of the public to the dangers involved in keeping large sums of money either at home, in market shops or other unsafe outlets, adding that utilising the banks remained the best to avoid the dangers of fire and armed robbery.

—  Apr 17, 2017 @ 01:00 GMT

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