Stop Patronising Illegal Fund Operators, NDIC Warns

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Managing Director of the Nigeria Deposit Insurance Corporation, Alhaji Umaru Ibrahim, has warned depositors against patronising illegal fund operators, otherwise known as “wonder banks” across the country, saying they are not licensed by the Central Bank of Nigeria.

Speaking during the 36th Kaduna International Trade Fair to mark the NDIC Special Day, Ibrahim said the agency would not carry the burden of banks ‘depositors’ plight in case of missing funds.

Ibrahim insisted that wonder banks (illegal fund managers) most at times disappeared after collecting customers’ money, leaving them in pains.

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 to 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, are not under the NDIC insurance cover.

“People often approach the corporation to seek redress after falling victims. 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 CBN, such as deposit money banks ,micro finance banks primary mortgage banks, and non interest/Islamic banks are under the NDIC insurance cover.”

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