NDIC cautions Nigerians against transactions in digital currencies

March 23, 2018

The Nigeria Deposit Insurance Corporation (NDIC) says transactions in digital currencies are not authorised by the Central Bank of Nigeria (CBN), cautioning Nigerias against transacting business in bitcoin and other crypto currencies.

The Manager, Research Department, NDIC, Mr Adikwu Igoche, gave the warning in an interview with the News Agency of Nigeria (NAN) on Friday at the ongoing 29th Enugu International Trade Fair.

NAN reports that bitcoin and other crypto currencies are forms of digital currencies which only exist in some websites and not backed by the country’s law.

Igoche said that crypto currencies were not deposits or financial instruments authorised by the CBN, adding: “therefore, they are no insured by the corporation.’’

“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,’’ he said.

According to him, the NDIC will not relent in sensitising Nigerians to financial, operational, legal and security risks they face by patronising ponzi schemes and digital currencies.

Igoche also urged Nigerians to patronise only banking institutions that displayed the NDIC sticker with the inscription, `insured by NDIC,’’ in their banking halls or entrances.

He said 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.

“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 on www.ndic.gov.ng,’’ he noted.

NAN reports that the fair is being organised by the Enugu Chamber of Commerce, Industry, Mines and Agriculture (ECCIMA) at the fair complex, beside Golf Estate, GRA, Enugu.

The fair, which has entered its 8th day, has its theme as “Engendering the Competiveness of Nigerian Products in the Global Market.”