NDIC Warns Nigerians Against Cryptocurrency Transactions

Nigerians Warned against Cryptocurrency Transactions

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  • Nigerian financial regulator, NDIC, warns citizen against cryptocurrency transactions.
  • The body claims cryptocurrency is not approved by the Nigerian government.

Nigeria: Nigerians have been warned by one of their financial regulators, the Nigeria Deposit Insurance Corporation (NDIC), against cryptocurrency transactions. The body urged all citizen to desist from any business investment and transactions in bitcoin and other cryptocurrencies. This, however, is not the first time warning ill b coming from regulators against investing in cryptocurrency.

Also read: Reddit Removes Bitcoin As A Payment Option

Adikwu Igoche, the Manager, NDIC Research Department, gave this warning in an interview on Friday, March 23 at the ongoing 29th Enugu International Trade Fair tagged “Engendering the Competitiveness of Nigerian Products in the Global Market.” He stated that Bitcoin and other cryptocurrencies are forms of digital currencies that are not backed by the Nigerian law but only exist on some websites. Igoche stated that cryptocurrencies are not financial or deposit instruments authorized by the Central Bank, adding: “Therefore, they are not insured by the corporation.”

Igoche said:

“Again these forms of currencies are not backed by any physical commodity, such as gold or other precious stones. They do not belong to the category of currencies or coins issued by the CBN or the central bank of any other country.”

According to Igoche, the NDIC will not relent in informing Nigerians about the financial, operational, legal and security risks they are likely to face with cryptocurrency transactions and patronizing Ponzi schemes. He also advised the Nigeria citizens to patronize only banking institutions that displayed the NDIC sticker with the inscription, “insured by NDIC,” in their banking halls or entrances.

He stated that a help desk had been created at the NDIC’s stand at the fair where depositors of closed banks could ascertain where and how to access their deposits and process their claims. He said:

“The corporation also operates a robust 24-hours national help desk with a toll-free telephone line number 080063424357. The desk is for further information and enquires on depositors’ claim settlement and complaints or sharp practices by their banks. The general public can also access our website at www.ndic.gov.ng.’’

The 29th Enugu International Trade Fair was organized by the Enugu Chamber of Commerce, Industry, Mines and Agriculture (ECCIMA) at the fair complex in Enugu.

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