The Nigeria Deposit Insurance Corporation (NDIC) has warned traders and business owners from patronising wonder banks and ponzi schemes.
Bello Hassan, the Managing Director/Chief Executive of NDIC, gave this warning at the NDIC Special Day at the 2023 Lagos International Trade Fair.
According to Hassan, the Deposit Insurance Scheme was created to protect the interests of small depositors by providing a mechanism for reimbursement in the event of imminent or actual bank failures amongst others.
He added that this is done while entrenching safe and sound banking practices, contributing to an orderly payments system, and enhancing fair competition in the banking sector.
He said: “Thus the DIS is designed as a “risk minimizer” with core functions of deposit guarantee, bank supervision, distress resolution, and liquidation of failed insured deposit-taking financial institutions. The NDIC complements the Central Bank of Nigeria in ensuring the safety, soundness, and stability of the financial system thereby instilling public confidence in the nation’s banking system.
“While the NDIC continues to collaborate with the Central Bank of Nigeria( (CB) in ensuring the effective supervision of banks and adherence to prudential thresholds and the Code of Corporate Governance for banks to safeguard the safety and stability of the Nigerian banking system, I would like to therefore call on the general public, especially traders and businessmen, to always ensure that their funds are saved in licensed banks and to avoid patronage of wonder banks and ponzi schemes which always leave their victims with untold stories."