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Nairametrics
Home Business News

NDIC warns Nigerians against ‘wonder banks’

Chidinma Nwagbara by Chidinma Nwagbara
March 21, 2020
in Business News, Company News, Politics
NDIC warns Nigerians against ‘wonder banks’
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The Nigeria Deposit Insurance Company (NDIC) has warned Nigerians to stop patronising unlicensed financial institutions.

Alhaji Umaru Ibrahim, the Managing Director/Chief Executive Officer of NDIC, warned the Nigerian populace not to be victims of such banks, as he disclosed the completion of payments to all depositors of the 18 failed banks.

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Ibrahim cautioned members of the public to stop patronizing “wonder banks” which offer mouthwatering interest rates to dupe unsuspecting members of the public of their hard-earned incomes in the name of investments.

 He counseled, “For the avoidance of doubt, these wonder banks are neither licensed by the Central Bank of Nigeria (CBN) nor are they under the NDIC deposit insurance scheme.

 “I advise members of the public to patronize insured banking institutions that display the NDIC stickers: ‘Insured by NDIC’ in their banking halls or entrances.”

(READ MORE: NDIC defends resolution procedures for failing banks, says it is holistic)

While delivering an address during the NDIC Day held at the ongoing 31st Enugu International Trade Fair, the NDIC boss said the monies paid include insured and uninsured trapped monies.

Ibrahim called on the general public, particularly traders and businessmen, to always save money in licensed banks, where the savings are protected by the NDIC.

“Desist from keeping their hard-earned monies in homes or shops to avoid the dangers of fire, theft, armed robbery, flood or other forms of losses,” he was quoted as saying.

Represented by the Enugu Zonal Controller, Vera Ikwue, the NDIC boss maintained that the agency would not rest on its oars in protecting depositors through prompt operational responses to novel developments in the banking system as they evolve.

 Meanwhile, since its incorporation in 1988, the NDIC has carried out liquidation activities on 425 financial institutions in the country.

READ MORE: CBN releases new capital base, sanctions for Microfinance Banks in new draft guidelines

A breakdown of the 425 liquidated banks during the period showed that 51 of them were Deposit Money Banks (DMBs), 325 Microfinance Banks (MFBs), and 51 Primary Mortgage Banks (PMBs).


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Tags: Alhaji Umaru IbrahimCBNEnugu International Trade FairMFBsNDICNigerian Business NewsNigerian Deposit Insurance CorporationPMBsVera Ikwue
Chidinma Nwagbara

Chidinma Nwagbara

Chidinma holds a degree in Mass communication from Caleb University Lagos and a Masters in view in Public Relations. She strongly believes in self development which has made her volunteer with an NGO on girl child development. She loves writing, reading and travelling. You may contact her via - chidinma.nwagbara@nairametrics.ng

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Comments 2

  1. Shuaibu Abubakar says:
    March 21, 2020 at 7:41 pm

    My understanding of the NDIC , is protecting the depositors from unregistered banks activities and creating awareness to the public

    Reply
    • Anthony says:
      September 1, 2020 at 8:29 pm

      Good day sir my name is Anthony I need you’re contact in regard of fortis microfinance bank Nigeria

      Reply

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