NDIC Warns On the Risk of Patronizing ‘Wonder Banks’

The Nigeria Deposit Insurance Company (NDIC) has advised Nigerians to stop patronizing unlicensed financial institutions.

Managing Director/Chief Executive Officer of NDIC, Alhaji Umaru Ibrahim warned the Nigerian populace not to be victims of such banks, as he disclosed the completion of payments to all depositors of the 18 failed banks.

Ibrahim cautioned members of the public who still patronize “wonder banks” which offer mouthwatering interest rates  to desist from it as they would end being duped of  their hard-earned incomes in the name of investments.

He said “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 the banking halls or entrances.”

While delivering an address during the NDIC Day held at the ongoing 31st Enugu International Trade Fair, the NDIC boss said the monies paid include insured and uninsured trapped monies.

Ibrahim called on the general public, particularly traders and businessmen, to always save money in licensed banks, where the savings are protected by the NDIC.

“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,” he was quoted as saying.

Represented by the Enugu Zonal Controller, Vera Ikwue, the NDIC boss maintained that the agency would not rest on its oars in protecting depositors through prompt operational responses to novel developments in the banking system as they evolve.

Meanwhile, since its incorporation in 1988, the NDIC has carried out liquidation activities on 425 financial institutions in the country.

A breakdown of the 425 liquidated banks during the period showed that 51 of them were Deposit Money Banks (DMBs), 325 Microfinance Banks (MFBs), and 51 Primary Mortgage Banks (PMBs).