NDIC warns against patronage of ‘wonder banks’

The Managing Director, Nigeria Deposit Insurance Corporation (NDIC), Alhaji Umari Ibrahim, on Thursday restated his warning to unsuspecting Nigerians against patronage of “wonder banks’’.
He gave the warning at NDIC Special Day at the ongoing 2016 Abuja International Trade Fair with the theme entitled, “Make it in Nigeria.’’


DAIlY POST observed that in recent months, some websites offer rates as high as 40% to 50% to people who pay monies to their account and leave for a month minimum.


A female graduate told our correspondent that she put N50,000 in one of such websites and got N27,000 interest after 30 days.


Asked if she was not scared that her money might not be retrieved, she replied: “I was and that was why I invested only N50,000. I saved it for one month ; I won’t patronize them again.”


Represented by the Director of Administration in the corporation, Mrs Christiana Afobor, Ibrahim said that “wonder banks’’ posed a challenge to the country’s financial sector.


“It is a worrisome development for the financial regulatory system that in spite of repeated warnings, many unsuspecting and financial naive members of the public have continued to patronise these dubious funds managers.

“They patronize these managers in view of mouth-watering interest rates and unattainable returns they offer their victims.


“For the avoidance of doubt, these wonder banks or illegal funds managers are neither licensed by the CBN nor are they under the NDIC deposit insurance scheme.


“Members of the public are therefore advised to patronize only banking institutions who display the NDIC stickers carrying the words ` Insured by NDIC’ in their banking halls,’’ he said.


Ibrahim said that the theme of the fair was very apt and demonstrated the Abuja chamber’s commitment to the hidden economic potential requiring new economic frontiers in the country.
He said that the fair also provided opportunities to revitalise the nation’s economy in the face of current challenges.


While reiterating measures by the corporation to deepen financial inclusion in the country, Ibrahim said that NDIC would not relent in its effort to protect depositors in insured financial institutions.
He said that the key mandate of the corporation was to provide deposit guarantee to depositors of insured financial institutions, banking supervision, distressed resolution and bank liquidation.


“We aim at protecting depositors by providing a mechanism for reimbursement in the unlikely event of bank failure and to contribute to financial system stability as a key pillar of financial safety-net,’’ he said.