NDIC warns Nigerians against activities of ‘wonder banks’

NIGERIANS have, again, been warned to steer clear of activities of illegal funds managers, otherwise known as ‘wonder banks, insisting that such practice does not enjoy the support of relevant authorities.

Giving the warning on Monday at the Nigeria Deposit Insurance Corporation (NDIC) special day at the ongoing Lagos International Trade Fair, the Managing Director and Chief Executive Officer of the corporation, Alhaji Umaru Ibrahim, said such warning had again become imperative since many Nigerians had continued to fall prey to the antics of these illegal fund managers.

Alhaji Ibrahim insisted that those who patronised those wonder banks were doing so at their own risk, since those ‘banks’ were neither licensed by the Central Bank of Nigeria (CBN), nor NDIC, and as a result, clients of such outfits would not enjoy any insurance cover, in case things went awry.

The NDIC boss therefore appealed to members of the public to patronise only banking institutions that display ‘Insured by NDIC’ tag, issued by the corporation, in their banking halls or entrances.

He, however added that the corporation had set up an interagency committee, under the Financial Services Regulatory Coordinating Committee (FRSCC), as a way to checking the activities of such illegal fund managers across the country.

Alhaji Ibrahim explained that the decision of the corporation to participate at this year’s fair was informed by the need to create public awareness among Nigerians, especially depositors.

“It is in furtherance of the aforementioned public awareness strategies that the NDIC recognises the importance of participating in the annual Lagos International Trade Fair which, not only attracts indigenous and international manufacturers and investors, but also provides a platform for the corporation to interact one-on-one with depositors and other stakeholders.

“I wish to sound a word of caution to members of the public on the activities of illegal funds managers, otherwise known as ‘wonder banks’. It is worrisome to note that despite repeated advice, many unsuspecting members of the public are still falling victims to the mouthwatering interest being offered by these illegal funds managers.

“I must sound a note of warning that those who patronise them do so at their own risk. For the avoidance of doubt, these illegal funds managers are neither licensed by Central Bank nor under the NDIC insurance coverage,” he added.