The Nigeria Deposit Insurance Corporation (NDIC) has advised depositors to avoid investment offers with quick and arbitrarily high returns.
This is part of the sensitisation drive of the Corporation, to continue to sensitize the public on their expected roles towards protecting their bank deposits.
Bello Hassan, managing director/chief executive, NDIC, gave the advice at the special day of the Corporation at the ongoing 34th Enugu International Trade Fair.
He said depositors are to ensure their phones have strong password and do not share their bank mobile app password with third parties; ensure no one is watching when they enter their PIN to perform transactions; ensure their token is secure and other parties do not have access to it; and ensure their debit card number and Card Verification Value are not exposed to people.
The NDIC boss reiterated to members of the public, particularly the teaming populace in the Medium, Small and Micro Enterprise (MSME) sector, and others in the informal segment of the economy that the safest, smartest and most prudent place to keep money is in the formal banking system because the NDIC protects the bank deposits.
Such deposits he said enjoy the benefit of effective regulation and supervision of relevant authorities, and take people’s hard earned money beyond the ambit of illegal fund managers and loan sharks that currently awash the investment landscape and fleecing unsuspecting members of the public.
He noted that the Corporation has been successfully and efficiently discharging its mandates from inception till date, living up to its public policy objectives and contributing to financial system stability.
For instance, “in the aspect of Deposit Guaranty, we are happy to state that NDIC has been highly responsive in providing coverage to all eligible deposits and accounts as they evolve in our banking system. Apart from depositors of Deposit Money Banks (DMBs), Primary Mortgage Banks (PMBs) and Microfinance Banks (MFBs), the Corporation has also been responsive by extending deposit insurance coverage to depositors of Non-Interest Banks (NIBs), subscribers of Mobile Money Operators (MMOs) and the recently introduced Payment Service Banks (PSBs).”
Depositors of DMBs, PMBs, PSBs and subscribers of MMOs are insured up to a maximum limit of N500,000.00 per depositor per bank while those of MFBs are guaranteed up to a maximum limit of N200,000.00 per depositor per bank.
The Corporation protects depositors through the discharge of its mandate in four critical ways namely: by guaranteeing deposits in banks; by supervising the banks in conjunction with the Central Bank of Nigeria (CBN) to ensure that they are run in safe and efficient manner in line with extant laws and regulations; by resolving issues of distress in banks to reduce instances of failure; and by ensuring orderly and efficient liquidation of failed banks to prevent disruptions to the payment system.
“The Corporation adopted participation in the Enugu International Trade Fair over the years, as a platform for continuous sensitization of depositors, and the general public on the existence of the Deposit Insurance Scheme (DIS), its advantages, and its limitations. This is significant to us as it will enhance public confidence in the financial system. We want the general public to know, and reflect always, that their deposits are safe and that in the unusual event of a bank failure, a government agency, the NDIC, is here to protect the depositors, especially the small savers,” he said.
