…Warns against Ponzi schemes
By Emma Ujah & Favour Isaac
The Nigeria Deposit Insurance Corporation (NDIC) currently provides full insurance cover for 98.98 percent of total customer deposits in Deposit Money Banks.
The Managing Director of the Corporation, Mr. Thompson Sunday, revealed this at the NDIC Special Day at the ongoing 20th Abuja International Trade Fair, with the theme, “Sustainability: Consumption, Incentives and Taxation”.
He restated NDIC’s commitment to ensuring financial sector stability, in collaboration with the Central Bank of Nigeria (CBN).
Represented by Director of Performance Management, Mrs. Bimpe Akande, the NDIC boss said: “Currently, NDIC insures depositors of Deposit Money Banks (DMBs), Mobile Money Operators and Non-Interest Banks, up to a coverage limit of five million naira. Depositors of Payment Service Banks (PSBs) Microfinance Banks (MFBs) and Primary Mortgage Banks (PMBs) are insured up to two million naira.
“This enhanced coverage ensures that approximately 98.98% of total depositors in Deposit Money Banks, 99.27% in Microfinance Banks, 99.34% in Primary Mortgage Banks, and 99.99% in Payment Service Banks are protected, reflecting NDIC’s unwavering commitment to fulfilling its mandate.”
He added, “We are dedicated to protecting Nigerians’ bank. In collaboration with the Central Bank of Nigeria (CBN), we strive to maintain stability in the banking sector, enforce compliance with banking regulations, and exercise effective oversight over insured deposit-taking institutions.
“Significant progress has been made in protecting depositors’ funds, notably through the increase in the maximum deposit insurance coverage, which has broadened protection across various licensed banks.”
According to him the Corporation had, over three decades, played a vital role in safeguarding depositors’ funds, particularly the most vulnerable, and fortifying the financial system.
He said banks’ depositors had no reason to worry about the safety of their funds, as all their claims in excess of the insured deposits.
He stated: “In the event that a bank fails, depositors with account balances exceeding the insured coverage limit receive an initial payment up to the maximum insured amount. Their remaining balances are then paid through liquidation dividends”.
Meanwhile, the NDIC boss has warned members of the public against patronising ponzi schemes and other fraudulent investment platforms.
His words: “I will like to emphasize the need for Nigerians to remain vigilant against Ponzi schemes and other fraudulent investment platforms. Always ensure your funds are placed only in CBN licensed banks, all of which are covered by deposit insurance provided by NDIC. This vigilance is crucial to protecting your hard-earned savings.”
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