Avoid ‘Wonder Banks’ – NDIC Warns Depositors
BY CHINYERE OBIORA, LAGOS – The Nigeria Deposit Insurance Corporation of Nigeria (NDIC) has again warned Nigerians against patronising dubious fund managers popularly called “Wonder Banks”.
The Corporation said Nigerians must take heed and refrain from doing business with these fraudulent institutions because of the life-threatening risk to many naive depositors as well as adverse impact on the nation’s economy
Managing Director and Chief Executive of NDIC, Alhaji Umaru Ibrahim said it is most distressing that many “unsuspecting victims are still cajoled by these ‘wonder banks’ to part with their hard earned money with promises of interest rates that are unrealistically high as returns on their investments.”
According to the NDIC boss, the consequences of such investments in these fraud-ridden institutions have always been catastrophic for many innocent depositors with the loss of their life-savings, even as some victims are sent to their early graves.
Similarly, Alhaji Ibrahim cautioned against the emerging trend of investing in digital currencies popularly known as Bitcoin that equally poses serious financial hazard like the “wonder banks”, noting that since these digital currencies are not licensed by Central Bank of Nigeria (CBN) as the apex banking regulator, they are therefore not insured by the Corporation.
The NDIC Chief Executive, who delivered this warning during the Corporation’s Special Day at the on-going Lagos International Trade Fair, said educating and enlightening depositors on the benefits and limitation of deposit insurance will empowered them to make informed financial decisions towards improved quality of life.
Earlier in his remarks, Director, Claims and Resolution, NDIC, Alhaji Asunmo-Shittu Bello urged members of the public to avoid patronising any financial institution not licenced by the CBN.
He said depositors’ funds would only be guaranteed when they do business with licenced commercial or micro-finance banks, explaining that existing laws provide for the maximum payment to depositors of N500,000 for Deposit Money Banks (DMBs) or N200,000 for Micro Finance Banks (MFBs) in the event of institutional failure.
