Ponzi scheme: NDIC warn Nigerians against mishap

Ponzi scheme: NDIC warn Nigerians against mishap

Raphael Orji Raphael Orji March 24, 2018

Ponzi scheme: NDIC warn Nigerians against mishap. The Nigeria Deposit Insurance Corporation  NDIC has reiterated its concern over Nigerians who gamble with their hard earned funds in wonder banks.

The advent of ponzi schemes in town gets the people salivating over extra ordinary profit with interest rate out of this world at just a very short period of investment. Considering harsh economic condition in the country people have given a deaf ear rather chose to patronize these schemes.

The NDIC managing Director Alhaji Umaru Ibrahim, gave this warning yesterday while addressing the people at the on going 29th Enugu international trade fair.

“Its obvious that many Nigerians have continued to lose money to ponzi schemes, thus the need to reiterate its danger. In a statement by its Director of Strategy Development Mr Festus  Ekechi, ” the corporation activities through the supervision of banks, continuous monitoring and oversight serves as consumer protection for depositors, which enhances confidence in financial system. ” “This act as an incentive for the un- banked to access financial services of licensed banks.

” This is vital to financial inclusion because poor and uninformed depositors need assurance that the services of the licence deposit taking institutions are safe and that they have access to their money whenever they need it, NDIC is committed to the safety of nations’ financial system.”

The key mandate of NDIC however is to provide deposit guarantee to depositors of insured financial institutions, banks, supervision, distress resolution and bank liquidation. “With the protection of the depositors in mind, the maximum Deposits Insurance coverage (MDIC) per depositor per bank increased from N50,000 in 1989 to N500,000 per (DMBS).

“Similarly the issued limit for Microfinance Banks and primary mortgage Banks (PMB) in 2009 was increased from N100,000 to N200,000 per MFB/PMB in 2010.

” Its pertinent to point out that depositors who have funds in excess of the insured limit are entitled to liquidation dividend after recovery of debts and sales of physical assets of the closed banks.

In his remark, the President of Enugu chamber of commerce chief Emeka Udeze, commended NDIC  for always partnering with the chamber to educate the banking public on safety of their funds.

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