The Nigeria Deposit Insurance Company (NDIC) has completed the payment of depositors of 18 failed banks. The commission, which disclosed this yesterday, said that the monies were trapped in the affected banks.
NDIC explained that the payments included both insured and uninsured monies.
Its managing director/chief executive officer, Alhaji Umaru Ibrahim, stated this when he delivered an address at NDIC Day, yesterday, at the ongoing 31st Enugu International Trade Fair.
He advised the general public, especially traders and businessmen, to always save money in licensed banks where the savings are protected by the NDIC.
Ibrahim, who was represented by the Enugu zonal controller of NDIC, Mrs Vera Ikwue, further advised members of the public to “desist from keeping their hard-earned monies in homes or shops to avoid the dangers of fire, theft, armed robbery, flood or other forms of losses.”
He assured that the NDIC will not rest on its oars in protecting depositors through prompt operational responses to novel developments in the banking system as they evolve.
Ibrahim also cautioned members of the public to stop patronising “wonder banks” which offer mouth-watering interest rates to defraud unsuspecting members of the public of their incomes in the name of investments.
He said: “For the avoidance of doubt, these wonder banks are neither licensed by the Central Bank of Nigeria (CBN) nor are they under the NDIC deposit insurance scheme. I advise members of the public to patronise insured banking institutions that display the NDIC stickers: ‘Insured by NDIC’ in their banking halls or entrances.”
The NDIC boss announced that the corporation had developed a framework for the extension of deposit insurance cover to the tune of N500,000 per depositor for depositors of Payment Service Banks (PSBs).
His words: “The PSBs recently granted licences in principle by the Central Bank are to provide basic banking and financial services to individuals and small businesses.
“This development underscores the operational readiness of the NDIC and its commitment to the enhancement of public confidence in the nation’s banking system “ he said.