NDIC cautions against patronising ‘wonder banks’

THE Nigeria Deposit Insurance Corporation (NDIC) has again warned the banking community against patronizing illegal fund managers also known as “wonder banks” who offer extraordinary interest rates on deposits.

NDIC Managing Director, Umar Ibrahim, gave the warning on Saturday at its Special Day at the just concluded 2015 Lagos International Trade Fair.

Umar, said the Central Bank of Nigeria (CBN) does not license these wonder banks and that they are not under the insurance cover of the NDIC whereby in the event of failure depositors get a maximum claim of N500,000 as is done with licensed banks.

He said the warning became imperative in view of the continuous existence of the illegal operators in different forms and styles in various parts of the country, while adding that many people often approach the corporation to seek redress after falling victims.

“For the avoidance of doubt, the corporation wishes to make it categorically clear that only depositors of banking institutions that are licensed to collect deposits by the CBN, Deposit Money Banks, Microfinance Banks, Primary Mortgage Banks and Non-Interest/Islamic Banks are under the NDIC insurance over,” Ibrahim stated.

Reiterating the slogan, “millions of depositors protected, billions of naira paid out,” Ibrahim, who was represented by the Director of Assets Management Department, NDIC, Alhaji Bashiru Umaru, reminded participants at the event that NDIC’s 24-hour Help Desk was still operational.

The NDIC Help Desk with a toll-free telephone line was established to address depositors’ complaints, while it enjoined depositors and the public to continue to avail themselves of the opportunity provided by the NDIC Help Desk.

Meanwhile, President of the Lagos Chamber of Commerce and Industry (LCCI), Alhaji Remi Bello congratulated the NDIC boss on his giant strides at the corporation over the years.

According to Bello, the NDIC has in no small measure contributed to the deepening of trust in Nigeria’s banking system and overall financial system stability, adding that it has a core mandate of depositor protection, through effective judicial process.

He said the Lagos International Trade Fair (LITF) has been expanded to meet aspirations and interests of investors, entertainers, and service providers like the NDIC, foreign business partners and government delegates.

“I therefore present to you this veritable platform to expose your brand to participants at this fair,” he stated.