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NDIC warns Nigerians against Ponzi schemes, illegal fund managers

... pays N11.76bn to over 530,000 bank depositors

The Nigeria Deposit Insurance Corporation (NDIC) on Thursday cautioned Nigerians not to patronize the services of Ponzi schemes and illegal fund managers also called “wonder banks”.

NDIC noted that they are not licensed by the Central Bank of Nigeria as deposit-money institutions and are not covered by the corporation.

The corporation equally said it has paid a cumulative amount of N11.76billion as the insured sum to 535, 815 depositors of closed banks since its inception to date.

Bello Hassan, managing director, and chief executive officer of NDIC, who advised during the corporation’s special day at the 2021 Edo trade fair in Benin City, said a total of N101.7billion had been paid as uninsured sum as of June 30, 2021, while a total of N6.16billion had been paid as liquidation dividend to 1,955 creditors and shareholders of closed banks.

Hassan, represented by Udofot Ukpong, senior manager NDIC, Benin zonal office, restated their mandate of protecting depositors, supervising banks, distress resolution, and bank liquidation, noting that a sound and stable financial system is the pivot upon which the economic system of any nation rests.

“Instructively, the corporation has declared full payment of insured and uninsured sums to depositors of 18 banks in liquidation. This implies that the corporation has realized liquidation dividend to pay all depositors of the banks who present themselves for payment,” Hassan said.

He further said that NDIC has responded to innovations in the financial system by extending deposit insurance cover to Microfinance Banks(MfBs), Primary Mortgage Banks(PMBs), Mobile Money Services (MMOs), Payment Service Banks (PSBs) to engender confidence in the financial system.

Read also: NCC, stakeholders move to tackle electronic frauds, roaming tariffs

The managing director, while speaking on the theme of the trade fair, “Expanding the frontiers of MSMEs through collaboration and capacity building”, opined that this is the time to promote the Micro, Small and Medium Enterprises sector as the key component towards revitalizing the nation’s economy.

According to him, the NDIC has been participating in major trade fairs across the country since 2007 not only to showcase its landmark achievements but also to enhance public awareness of its core mandate.

Earlier, Aina Omo-Ojeonu, president of Benin Chamber of Commerce, Industry, Mines and Agriculture (BENCCIMA), commended NDIC for the public enlightenment, tasking them to protect depositors.

“Before now a lot of people did not know what NDIC was but your presence has changed the narrative. It makes us confident that there is an organization that is taking care of our money. We work hard for this money and want it to be protected. We don’t want a situation where we put our money in the bank and do not get it,” Omo-Ojeonu said.

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