NDIC warns public against illegal fund raisers

The Nigeria Deposit Insurance Corporation (NDIC) has warned the public against patronizing illegal fund raisers, known as wander banks.
The Corporation said the illegal fund raisers are neither licensed by the Central Bank of Nigeria CBN nor under the deposit insurance coverage.
“Members of the public are thereby advised to patronize only banking institutions that display the NDIC sticker”, Umaru Ibrahim, Managing director NDIC, said yesterday at the international trade fair! Lagos.
Represented by A.S Rotimi, deputy director of claim resolution department, Umaru saidsince it commenced operation in 1989, the NIDC  has been discharging  its mandate creditably. The maximum deposit insurance coverage (MIDC) per depositor has progressively increased from N500 in 1989 to its current N500,000 per depositor per DMB.
Similarly the insured limit for microfinance banks and primary mortgage banks in 2009 was increased from N100,000 to N200,000 per depositor per head. He said on August 4, 2016, Minister of finance approved an upward review of the deposit insured limit for depositors of PMB’s to N500,000, in order to ensure coverage of over 90 percent of depositors in the banking sector.
According to him, following the CBN’s licensing of non-interest banking institutions and 21 mobile money operators (MMO) , the corporation equally extended deposit insurance coverage to the subscribers of these banking products to the maximum limit of N500,000 per depositor. In addition, the corporation developed framework of pass-through deposit insurance scheme to the MMOs and non interest banks subscribers respectively with a maximum insured limit of N500,000 per subscriber.
He further said that, the NDIC has also mapped out aggressive public awareness campaign strategies to promote financial inclusion. It has also partnered with the national universities commission (NUC) to introduce a pilot scheme of two courses on deposit insurance scheme of two courses on deposit insurance scheme into the curricular of undergraduate programmes in seven selected premier universities in the country with the aim of enhancing undergraduates knowledge in the deposit insurance system and the role of NIC in contributing to the financial system stability.
Speaking at the fair, Nike Akande President LCCI, who was represented by Paul Babatunde Ruwase, her deputy, said trade fair this year is specially packaged to meet certain standards, to address the issue of value addition into the oil sector of the economy which is why the theme for this year’s trade fair is “Positioning the Nigerian Economy for Diversification and Sustaining Growth”.