NDIC warns public against ‘wonder banks

The Managing Director, Nigeria Deposit Insurance Corporation (NDIC), Alhaji Umari Ibrahim, on Thursday restated his warning to unsuspecting Nigerians against patronage of “wonder banks’’.

He gave the warning at NDIC Special Day at the ongoing 2016 Abuja International Trade Fair with the theme entitled, “ Make it in Nigeria.’’

Represented by the Director of Administration in the corporation, Mrs Christiana Afobor, Ibrahim said that “wonder banks’’ posed a challenge to the country’s financial sector.

”It is a worrisome development for the financial regulatory system that in spite of repeated warnings, many unsuspecting and financial naive members of the public have continued to patronise these dubious funds managers.

” They patronize these managers in view of mouth-watering interest rates and unattainable returns they offer their victims.

“For the avoidance of doubt, these wonder banks or illegal funds managers are neither licensed by the CBN nor are they under the NDIC deposit insurance scheme.

“Members of the public are therefore advised to patronize only banking institutions who display the NDIC stickers carrying the words ` Insured by NDIC’ in their banking halls,’’ he said.

Ibrahim said that the theme of the fair was very apt and demonstrated the Abuja chamber’s commitment to the hidden economic potential requiring new economic frontiers in the country.

He said that the fair also provided opportunities to revitalise the nation’s economy in the face of current challenges.

While reiterating measures by the corporation to deepen financial inclusion in the country, Ibrahim said that NDIC would not relent in its effort to protect depositors in insured financial institutions.

He said that the key mandate of the corporation was to provide deposit guarantee to depositors of insured financial institutions, banking supervision, distressed resolution and bank liquidation.

“ We aim at protecting depositors by providing a mechanism for reimbursement in the unlikely event of bank failure and to contribute to financial system stability as a key pillar of financial safety-net,’’ he said.

Mr Tony Ejinkeonye, President, Abuja Chamber of Commerce and Industry, said that the choice of the theme was in response to the current realities of the Nigerian economy.

Ejinkeonye said it was a clarion call to governments at all levels to do the needful to improve the business environment and encourage private sector operations, especially small and medium enterprises.

He said that the 2016 fair aimed at promoting accelerated development of commerce and industry and revitalizing the country’s economy by promoting non-oil exports.

He said that it was also aimed at directing attention to the role of private sector in the Nigerian economy, provide access to resources and technology findings and attract foreign investments.

Ejinkeonye commended NDIC for its role in the economy and called for more public awareness on deposit insurance cover available to depositors