Beware of ‘wonder banks’, NDIC warns

The Nigeria Deposit Insurance Corporation (NDIC) has urged Nigerians to be wary of ‘wonder banks’ that give extra-ordinary interest rates and profits on investments.

Its Managing Director, Alhaji Umaru Ibrahim, gave the advice in an address at the NDIC Special Day at the ongoing 29th Enugu International Trade Fair in Enugu yesterday.

Umaru, who was represented by NDIC Director of Strategy Development, Mr Festus Ekechi, said many Nigerians had continued to lose fortunes and even their life savings to Ponzi schemes and other illegal fund managers with disastrous consequences.

“The corporation’s activities, through the supervision of banks, continuous monitoring and oversight, serves as consumer protection for depositors (in legal banks) which enhances confidence in the financial system.

“This acts as an incentive for the unbanked to access financial services of licensed banks.

“Poor and uninformed depositors need assurance that the services of licensed deposit taking institutions are safe and that they have access to their money whenever they need it,” he said.

The NDIC managing director said the corporation was determined to ensure the safety and soundness of the nation’s financial system.

According to him, its key mandate is to provide deposit guarantee to depositors of insured financial institutions, banks supervision, distress resolution, and bank liquidation.

Earlier, the President of Enugu Chamber of Commerce, Chief Emeka Udeze, had commended NDIC for always partnering with the chamber to educate the banking public on the safety of their bank deposits.

Udeze said NDIC remained resolute in the protection of depositors’ funds within banks and other financial institutions in the country.