NDIC Cautions Nigerians Against Patronizing Wonder Bank Operators

Posted by African Examiner Business News, Featured, Latest Headlines Thursday, March 19th, 2020

From Ignatius Okpara, Enugu

(AFRICAN EXAMINER) – Nigeria Deposit Insurance Company (NDIC) has cautioned Nigerians to stop patronizing “wonder banks” which offer mouthwatering interest rates to dupe unsuspecting members of the public of their hard-earned incomes in the name of investments.

Managing Director/Chief Executive Officer of NDIC, Alhaji Umaru Ibrahim stated this on Wednesday during the NDIC special day at the ongoing 31st Enugu International Trade Fair.

He said: “I appeal to members of the public to stop patronizing these wonder banks which offers mouthwatering interest rates to dupe unsuspecting members of the public of their hard-earned incomes in the name of investments.

“For the avoidance of doubt, these wonder banks are neither licensed by the Central Bank of Nigeria (CBN) nor are they under the NDIC deposit insurance scheme. I advise members of the public to patronize insured banking institutions that display the NDIC stickers: ‘Insured by NDIC’ in their banking halls or entrances,” he counseled.

The NIDC boss, who spoke through the Enugu Zonal Controller, Mrs Vera Ogbo-Ikwue, also informed the public that NDIC has completed payments to all depositors of 18 closed Deposit Money Banks all their monies trapped in such banks, adding that these include both insured and uninsured monies.

He, therefore, advised members of general public, especially traders and businessmen, to always save money in licensed banks where the savings are protected by the NDIC.

Ibrahim, equally asked members of the public to “desist from keeping their hard earned monies in homes or shops to avoid the dangers of fire, theft, armed robbery, flood or other forms of losses.”

The NDIC, he said, will not rest on its oars in protecting depositors through prompt operational responses to novel developments in the banking system as they evolve.

He disclosed that the corporation has developed the framework for the extension of Deposit Insurance cover to the tune of N500, 000 per depositor for depositors of Payment Service Banks (PSBs).

“The PSBs, recently granted licence in principle by the Central Bank are to provide basic banking and financial services to individuals and small businesses.

“This development underscores the operational readiness of the NDIC and its commitment to the enhancement of public confidence in the nation’s banking system.”

In his remark, president of Enugu chamber of Commerce Industry, Mines and Agriculture, (ECCIMA), sir, Emeka Nwandu, who was represented by the 1st Deputy president of the chamber, Barrister Paschal Nduagwuike, had applauded NDIC for its role in the growth and development of the nation’s economy.

He expressed appreciation to the establishment for always participating at the annual trade fair, urging it to keep the flag flying.