Currently making rounds on social media are rumours that online savings and investment company, PiggyVest, lost an enormous sum of N2 billion to a fraudulent investment scheme. The rumours were sparked after a user alleged on Instagram that Piggyvest and some other top organizations in Nigeria invested in an allegedly fraudulent company, Imagine Lenders, inciting the panic of users who became scared for their hard-earned money.
In a prompt response, PiggyVest, via its Instagram and Twitter pages released a statement guaranteeing the security of users’ funds. “Please note that Piggyvest will never compromise the funds of any users in any way. All Piggyvest user funds remain safe and secure. No user funds have experienced any loss of any kind, nor will they experience anything of the kind,” Piggyvest said. Although the statement did not confirm or debunk the investment loss, it was enough to still the raging waters. The company has often been involved in financial rumours, and for users, the fear and anxiety that usually ensues is exhausting. The questions now are; what if the current rumours are true? And assuming they are, do users have enough reason to panic? Probably not, and here’s why.
Piggyvest operates as a Microfinance bank regulated directly by the Central Bank of Nigeria, and funds deposited by users are insured by the Nigeria Deposit Insurance Corporation (NDIC). The Nigeria Deposit Insurance Corporation (NDIC) is responsible for insuring all deposit liabilities of licensed banks and other deposit-receiving financial institutions in Nigeria. It also supervises banks so as to protect depositors, foster monetary stability, and promote an effective and efficient payment system. Additionally, PiggyVest’s funds are warehoused with AIICO Capital, an asset management company in Nigeria, registered and licensed by the Securities and Exchange Commission (SEC).
While the fintech company has no control over rumours and the spread of it, each time, it has promptly responded to users’ concerns, reassuring the safety of users’ funds, in a bid to maintain the trust people have in it to secure their funds.
Founded in 2016 by Ayo Akinola, Joshua Chibueze, Nonso Eagle, Odunayo Eweniyi, and Somto Ifueze, Piggyvest provides one of the top platforms for savings and investment in Nigeria. The fintech was initially known as Piggybank.ng but was later rebranded as Piggyvest.
Unlike traditional bank savings accounts, Piggyvest lets individuals restrict withdrawals until an agreed date or users can withdraw their savings on a quarterly basis, whereby savings are drawn outside of the agreed day attract a 5 percent early withdrawal fee. So while the platform is extremely simple and flexible to use, users are discouraged from tampering with their savings.