NDIC warns against patronage of re-emerging wonder banks

Acheme Jack, Kano

The Nigeria Deposit Insurance Corporation, NDIC has told Nigerians to stop patronizing fraudsters under the cover of wonder banks that have re-emerged and duped people of billions of naira.

The Managing Director of NDIC, Umar Ibrahim gave the warning at the maiden edition of the NDIC Stakeholders Town Hall Meeting with the theme: ‘’Bank Consumer Protection the Role of NDIC’’ held at the Avenue Event Centre in Kano state.

Ibrahim decried the re-emergence of the wonder banks saying that ‘’they are duping people of their hard earned money and promising returns that are not tenable in the financial services sector.’’

He urged people to stop being greedy and to patronize money deposit banks or micro-finance  banks that are officially licensed by the Central Bank of Nigeria, CBN, and insured by NDIC to carryout financial transactions for the people.

‘’How can someone ask you to deposit N1OO,OOO with them and get N5O, OOO per month or 3O percent return every month from such deposit for the rest of your life and you believe it is possible. These people have no assets or nothing to fall back on when they collect your money and run away. Most people who patronize them do it out of greed’’ explained Ibrahim

He said the government was not relaxed over the development as a lot of them had been apprehended and were being prosecuted by Securities and Exchange Commission, SEC, through the Investment and Securities Tribunal.

He said the series of arrests and prosecution have made many of them go under ,which by implication, had reduced their operations.

Banks in North east

The NDIC boss also urged all banks that ceased operations in north eastern Nigeria because of the boko haram attacks, to resume operations in the urban and rural areas to enhance business.

The states affected in the north east include Borno,Yobe, Gombe, Bauchi, Adamawa and Taraba.

According to him, ‘’the north east region of the country which was ravaged by the insurgence more than ever before needed the services of the banking services sector to re-build.’’

He said activities in the region had returned to almost normal, after a military clamp down on the insurgents, as such, the banks should resume operations in earnest to serve the government, organizations and people of the area.

‘’Without adequate banking facility, without access to finance, progress in that area will remain retarded. There is the need to provide financial services to our poor brothers and sisters in that area to start life afresh’’, stressed the Managing Director.

He said the stakeholders forum was organized to further demonstrate the Corporation’s determination towards promoting consumer protection.

He stated that it was also aimed at enlightenment of stakeholders, particularly bank customers on the benefits of a saving culture, cooperative societies, cottage industries and petty trading, in order to raise the standard of living among Nigerians.

He concluded that the forum, which will be an annual event, would be held in the six geopolitical zones of the nation and was equally geared towards enhancing public confidence in the banking sector which will ultimately promote financial systems stability.