The Nigeria Deposit Insurance Corporation (NDIC) has warned Nigerians to be cautious of Ponzi schemes masquerading as financial institutions.
Issuing this warning on Wednesday, Chima Onyechere, the NDIC’s Zonal Controller for the Ilorin Zone, told the News Agency of Nigeria (NAN) on Wednesday that such financial institutions were fraudulent.
“There are a lot of ponzi schemers across the country, especially in local places. People in these places may not be aware of their scheme because they entice people with high interest rate. They trick people into putting money in their fraudulent financial institutions and people are not aware that they are illegal,” Chima said.
“Whenever Nigerians come across these financial institutions without NDIC certification, they should ask questions and find out if they are insured under NDIC before doing any business with them,’’ He added.
The Zonal Controller also disclosed that the company had stepped up its nationwide awareness campaign to alert consumers about con artists using ponzi schemes.
“That is why NDIC is passing a message to everyone on the need to look out for financial institutions that have the corporation’s certification to operate,” Onyechere said.
The NDIC’s warning comes as Nigerians are searching for ways to make quick money in order to survive the country’s severe economic predicament.
In the past, Nigerians have been victims of ponzi scams, losing their hard-earned cash to companies like MMM, NNU, and other operators who folded after being unable to maintain the program.
Numerous celebrities and social media influencers have been implicated in the Ponzi scandals for leveraging their platforms to promote scandalous enterprises that ultimately cause Nigerians to lose money and incur debt.