The Nigeria Deposit Insurance Corporation (NDIC) has warned Nigerians against dealing with illegal fund managers, often referred to as “Wonder Banks” or “Ponzi Schemes.
Managing Director/Chief Executive (MD/CE) of NDIC, Bello Hassan , gave the warning on the occasion of Corporation’s special day at the 18th Abuja International Trade Fair.
He urged the public to be mindful of the unrealistic high interest rate offered by these unsecured institutions as a bait to lure unsuspecting victims.
His words, “We at the NDIC hold the strong view that Knowledge is Power, and we believe that an informed depositor can make better financial decisions.
“I urge the public to be cautious of illegal fund managers, often referred to as “Wonder Banks”or “Ponzi Schemes.”These entities offer high-interest rates and profits that are too good to be true, leading to devastating losses for many.
“These entities offer high-interest rates and profits that are too good to be true, leading to devastating losses for many.
“It’s important to note that these “wonder banks”are neither licensed by the Central Bank of Nigeria nor covered by the NDIC deposit insurance scheme.
“Members of the public are therefore advised to patronize only banking institutions with a display of the NDIC Stickers carrying the words: Insured by NDIC in their banking halls or entrances and various branches across the country.”
Hassan noted that the 2023 Abuja International Trade Fair with the theme, “Sustainable Financing and Taxation as Drivers for the New Economy,” was relevant given government’s efforts towards achieving sustainable economic growth through strengthening the financial environment.
“This falls in line with the Corporations contributions of ensuring the stability of the financial system by effectively complimenting the CBN in supervising the banking sector and safeguarding depositors’ funds from the adverse effects of bank failures when it occurs.
“Indeed, Nigerian depositors are our priority and our foundation is built on ensuring the safety and security of their deposits. This ideal is encapsulated in our strap line; Protecting your bank deposits!.
“This is crucial for financial inclusion because it gives Nigerians the assurance that their money is safe and accessible when needed.
Furthermore, the Corporations activities through the supervision of banks, continuous monitoring and oversight serves as consumer protection for depositors which enhances confidence in the financial system.” Hassan stated.
The NDIC boss disclosed that as at 22ndSeptember 2023, the Corporation had paid a cumulative insured sum of N1.08 billion naira to 29,573 depositors of the closed Micro Finance Banks and Primary Mortgage Banks (MFBs/MPBs).
“It is however instructive to let you know that payments are still ongoing and depositors with funds exceeding the insured limit will receive liquidation dividends after recovery of debts and sale of physical assets of the closed banks.
“Currently, the Corporation is in the process of verifying and paying liquidation dividends to depositors and stakeholders of 20 closed banks.”
“They are Allied Bank, Peak Merchant Bank, Commerce Bank, Continental Merchant Bank, Financial Merchant Bank, Fortune Bank, Gulf Bank…
“Hallmark Bank, Icon Merchant Bank, Liberty Bank, Nigeria Merchant Bank, North South Bank, Premier Commercial Bank, Prime Merchant Bank, Progress Bank and Merchant Bank.
“Eligible parties can visit our website for more information and download verification forms at, www.ndic.gov.ng and submit them to claimscomplaints@ndic.gov.ng. “
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