The Nigeria Deposit Insurance Corporation
on Thursday warned depositors against
patronising illegal fund operators, popularly
called ‘wonder banks’.
The corporation said that the wonder banks
offering attractive interest on deposits were
not licensed to operate by the Central Bank
of Nigeria.
The Managing Director, NDIC, Alhaji Umaru
Ibrahim, spoke in Kaduna at the 36th
Kaduna International Trade Fair, stressing
that the corporation would not be
responsible for depositors’ missing funds
traceable to the wonder banks.
Ibrahim said that wonder bank managers
often disappeared after collecting
customers’ money, leaving them in pains.
He urged Nigerians to stay clear of them.
He said the warning became necessary in
view of the report of the continued
operation of the outlawed fund operators in
different forms and styles in various parts
of the country.
He said, “I wish to seize this opportunity to
once again advise members of the public
against patronising illegal fund managers,
also known as ‘wonder banks’ who offer
extra-ordinary interest rates on deposits or
investments only to disappear after
collecting the deposits or investments.
“These illegal operators are not licensed by
the CBN as deposit-taking financial
institutions; and as such, they are not under
the NDIC insurance cover.
“People often approach the corporation to
seek redress after failing victim. For the
avoidance of doubt, the corporation wishes
to make it categorically clear that only
depositors of institutions that are licensed
to collect deposits by the CBN such as
deposit money banks, micro finance banks,
primary mortage banks, and non interest/
Islamic banks are under the NDIC insurance
cover.”
Ibrahim said one of the things contained in
the proposed amendments to the NDIC Act
2006 was building of the corporation’s
general reserve funds to create a robust
deposit insurance fund.

www.punchng.com/business/money/stop-patronising-wonder-banks-ndic-warns-depositors/

Bad Economy in some cases and greed in other cases.