The Nigeria Deposit Insurance Corporation has raised the alarm on the rapid spread of illegal money schemes across the country, cautioning citizens against putting their hard-earned money in unregulated institutions or illegal fund operators.

The Managing Director and Chief Executive Officer of the Corporation, Thompson Sunday, delivered the warning on Wednesday in Abuja during the NDIC Special Day at the 21st Abuja International Trade Fair.

Speaking on the overarching theme of the fair, “Resilience: Trade, Taxation and the Economy,” the NDIC boss emphasised that safeguarding individual savings and ensuring a stable banking climate are fundamental to achieving the Federal Government’s target of a $1tn economy by 2030.

Addressing participants and key business stakeholders at the event, Sunday made a direct appeal to the public to avoid high-yield financial traps that lack regulatory backing.

He expressed grave concern over how unsuspecting citizens continue to fall victim to speculative investment setups that promise unsustainable returns.

“There are still Nigerians who keep substantial funds outside the formal banking system or entrust their savings to unlicensed fund managers, attracted by promises of extraordinary and unrealistic returns,” he stated.

The NDIC chief noted that the consequences of these choices are often disastrous, pointing out that “the proliferation and collapse of Ponzi schemes have demonstrated, time and again, the enormous financial and emotional cost of placing hard-earned resources in unregulated schemes.”

He advised citizens to exercise strict caution, adding that “if an investment promise sounds too good to be true, Nigerians should pause, ask questions and verify before committing their money.”

In contrast to the grave risks of illicit schemes, Sunday highlighted the safety measures provided by licensed banking institutions, noting that the NDIC acts as a critical safety-net pillar to safeguard customer deposits.

He pointed out that following a significant policy enhancement in 2024, maximum deposit insurance coverage limits were raised to N5m per depositor for Deposit Money Banks and Mobile Money Operators, alongside N2m per depositor for Microfinance Banks, Primary Mortgage Banks, and Payment Service Banks.

According to the NDIC MD, this enhancement guarantees 100 per cent deposit coverage for more than 98 per cent of bank depositors nationwide, shielding households and small enterprises from the fallout of bank insolvencies. He added that for account balances above the insured limits, the NDIC steadily distributes liquidation dividends derived from debt recoveries and asset disposals so that no depositor loses faith in the financial system.

To streamline depositor protection, the NDIC boss revealed that the Corporation has fully embraced modern digital systems to deliver faster claim payments, shifting away from slow, paper-heavy physical verifications. By leveraging tools like the Single Customer View framework, Bank Verification Numbers, and NIBSS payment infrastructure, verified depositors now receive payments within days of a bank closure.

Furthermore, Sunday announced the launch of an upgraded interactive website, featuring a digital portal complete with a one-click Quick Action Bar for filing claims and checking bank statuses, as well as an AI-powered virtual assistant designed to offer real-time guidance to the public. He encouraged depositors to ensure their account records and BVNs remain properly synchronized across institutions to enable seamless background verifications.

The Nigerian National Petroleum Company Limited recorded claims totalling N11.2tn from the Federation in 2025 for costs and advances incurred on its behalf, including expenses related to securing the country’s oil and gas assets, an analysis of its 2025 audited financial statements has shown.

The statement obtained on Wednesday said the N11.2tn in receivables represented costs and advances incurred on behalf of the Federation, an amount that is N4.07tn, or about 57 per cent, higher than the N7.13tn energy security expense recognised in 2024.

The figure highlights the substantial financial burden associated with protecting oil and gas infrastructure against crude oil theft, pipeline vandalism and other disruptions, even as the national oil company reported higher production and a 33 per cent increase in profit after tax.

The audited accounts, however, show that the N11.2tn figure represents energy security costs and other receivables from the Federation, rather than a straightforward cash expenditure newly recognised in 2025.

The company stated that no energy security expense was recognised in 2025, compared with N7.13tn in 2024, following a reconciliation of outstanding amounts against royalties, taxes and dividends due as of December 2024. The reconciliation was completed in September 2025.

The figures come amid the Federal Government’s removal of the petrol subsidy in 2023 and subsequent deregulation of the downstream petroleum market.

NNPC’s 2024 accounts recorded energy security expenses of N7.13tn, compared with N4.8tn in 2023. That represented an increase of approximately N2.33tn, or 48 per cent, in the amount reported for the two years.

The financial report explained, “Other receivables from federation relates to advance payment to Federation and the security costs incurred in protecting the oil and gas assets. This is under the framework of approval between the Government of Nigeria and the Group to incur security costs and charge same to the Federation.”

The financial statements showed that the group’s energy security cost receivable stood at N8.67tn at the end of 2025, while other receivables from the Federation, including advances and security-related costs, brought the total to N11.2tn.

According to Note 24.2 of the accounts, other receivables from the Federation relate to advance payments to the government and costs incurred in protecting oil and gas assets.

The company explained that the arrangement operated under an approved framework between the Federal Government and NNPC, allowing the national oil company to incur security costs and charge them to the Federation.

The accounts stated, “During the year, no energy security expense was recognised (2024: N7.13 trillion). Following a reconciliation exercise with relevant government agencies, the Energy Security Cost receivables were netted off against royalties, taxes, and dividends due as at December 2024. The reconciliation exercise concluded in September 2025.”

The disclosure means the N8.67tn energy security balance should not be interpreted as fresh spending incurred entirely in 2025. Rather, it reflects the outstanding balance carried in the accounts before its reconciliation against government obligations.

The issue is significant because oil theft, pipeline attacks and production disruptions have historically constrained Nigeria’s ability to maximise crude oil output and earn foreign exchange from petroleum exports.

NNPC’s financial results showed that crude oil and condensate production averaged 1.77 million barrels per day in 2025, the highest level in five years, while natural gas production reached a three-year high of 7.2 billion standard cubic feet per day.

The company said, “Oil and condensate production totalled 565.8 million barrels, up 5 per cent, with NNPC Limited’s equity share increasing 11 per cent to 223.7 million barrels.

“Natural gas production reached 2,606.2 billion standard cubic feet, up 9 per cent, while its equity share rose 11 per cent to 1,154.9 billion standard cubic feet.”

Despite the improved output, the company’s accounts showed that pipeline maintenance costs fell sharply to N13.813bn in 2025 from N149.478bn in 2024, down by N135.665bn, or 90.8 per cent.

Speaking at the media parley to announce its financial results, the NNPC GCEO, Bayo Ojulari, said the company was also recording improvements in the fight against crude oil theft, particularly on major crude evacuation pipelines.

He said the combination of community-based surveillance, government intervention and security agencies had helped restore the availability of major pipelines, noting that reconciliation between crude produced and volumes accounted for at terminals had improved significantly.

“The most devastating theft has been on our major pipelines in the past, if you remember, right? With the combination of both community-based surveillance and intervention combined with the armed forces, we’ve seen stability, and most of those pipelines have retained 100 per cent availability,” Ojulari said.

He added that while the major pipelines were now more reliable, theft remained a challenge around smaller pipelines and wellheads across difficult terrains.

“We’re installing high-technology, what we call well-head cages, that detect intruders and can quickly respond… On some of the pipelines now, we’re also leveraging technology. We’re advancing technology using fibre optics technology as much as possible and intruder detection,” he said.

In its announcement, NNPC reported a profit after tax of N7.2tn, up from N5.4tn in 2024, while earnings before interest, taxes, depreciation and amortisation increased by 22 per cent to N18tn.

Operating cash flow rose by 16 per cent to N12.8tn, earnings per share increased by 32 per cent to N35.9, and the declared dividend reached N5.8tn. Revenue stood at N34.5tn.

The company attributed its improved operational performance partly to progress on strategic infrastructure projects, including the completion of the River Niger crossing on the Ajaokuta-Kaduna-Kano gas pipeline and the completion of the 40-inch, 623-kilometre mainline.

It also said it commissioned the ANOH-OB3 Custody Transfer Metering Station, advanced the 300 million standard cubic feet per day ANOH Gas Processing Plant towards start-up readiness and acquired 500 compressed natural gas-powered trucks.

NNPC’s forward targets include raising crude oil production to two million barrels per day by 2027 and three million barrels per day by 2030. It is also targeting gas production of 12 billion standard cubic feet per day by 2030 and plans to mobilise $60bn in upstream, midstream and downstream investments over the period.

The financial statements do not provide a separate, quantified breakdown of petrol subsidy payments for 2025 in the figures supplied. Therefore, the energy security receivables cannot be treated as a direct measure of savings from the removal of petrol subsidies.

However, the disclosure provides an indication of the scale of another major petroleum-sector obligation facing the government as it seeks to improve production, protect infrastructure and strengthen public finances.

Nigerian billionaire and President of the Dangote Group, Aliko Dangote, has blamed local marketers and international oil companies for fuelling protests over land earmarked for his proposed $16bn oil refinery in Lamu, Kenya.

Dangote and the President of Kenya, William Ruto, performed the groundbreaking ceremony for the refinery in Lamu on Wednesday. This comes even as a court halted construction activities due to a land dispute.

Dangote made the allegation while speaking to the BBC’s Focus on Africa programme, amid protests by some residents over compensation for land acquired for the refinery project.

The refinery is expected to have a processing capacity of 700,000 barrels per day when completed in 2030. Dangote disputed claims that the company had taken more land than it required, saying it only used the portion allocated to it by the Kenyan Government.

“They said some people are demonstrating; demonstrating about what? Have you ever seen people demonstrating against themselves in terms of development?” he asked.

Africa’s richest man dismissed the protests as “games played by local marketers and international players”, insisting the refinery would go ahead and would be ready by 2030 as planned.

The groundbreaking was also attended by the leaders of Uganda, Ethiopia, Togo and Benin. Dangote has offered regional governments a combined 30 per cent stake in the refinery, according to Reuters.

The billionaire insisted that the protests would not stop the refinery project, which he described as his largest proposed investment outside Nigeria.

The project is expected to become the largest refinery in East Africa and Kenya’s biggest infrastructure project since independence, surpassing the $5.1bn Standard Gauge Railway.

Dangote said the refinery would demonstrate that the success recorded with his 700,000bpd refinery in Nigeria could be replicated elsewhere on the continent.

“Lekki proved that it can be done, Lamu must prove that it can be repeated,” he said.

However, the Save Lamu campaign group has raised concerns about the environmental impact of the project on the local community. The co-founder of the group, Walid Ali, told the BBC that residents wanted to see the findings of the environmental impact assessment and the proposed mitigation measures.

A group of 133 Lamu residents had approached the Kenyan High Court in a bid to stop construction work. Following the legal action, activities including excavation and construction on the disputed land have been restricted pending the next court hearing, scheduled for October 14.

Dangote said the refinery would create about 60,000 jobs at the peak of construction, with local communities expected to benefit from the project.

The refinery will also include a 1,000-megawatt power plant designed to supply Dangote’s operations and other industries expected to establish businesses in the area.