NDIC warns depositors against investing in digital currencies, wonder banks

NDIC warns depositors against investing in digital currencies, wonder banks

The Nigeria Deposit Insurance Corporation (NDIC) has warned depositors and the general public about the emerging trend of investing in digital currencies popularly known as Bitcoins, as well as wander banks, saying it is hazardous.

According to the Corporation, the digital currencies are not licensed by the Central Bank of Nigeria (CBN) and are therefore not insured by the NDIC.

The Corporation advised depositors to patronise only financial institutions that are licensed by the CBN and which display the NDIC Sticker with the words: “insured by NDIC’ in their banking halls or entrances, adding that protection of the depositor remains its top priority.

“It is for this reason that I must sound a word of warning against patronising dubious fund managers, otherwise known as “Wonder Banks”. They persuade their unsuspecting victims to part with their hard earned money with promises of interest rates that are unrealistically high as the returns on their investments. The result is the loss of vital savings and sometimes disastrous consequences to the lives of the victims”, Umaru Ibrahim, managing director/CEO, NDIC said in Lagos.

Represented by Bello Shittu, director, Claims Resolution Department, at the NDIC special day at the 2017 Lagos International Trade Fair, Ibrahim said the Corporation has paid over N100 billion to depositors of liquidated ranks. The payments are not done in secret. NDIC has been publishing in newspapers, audio and television, whenever insured deposits and uninsured deposits were due for payment.

“We implore those depositors who have not responded to our calls to come forward to collect their insured deposits and liquidation dividends already declared for uninsured deposits”, Ibrahim said.

He said the NDIC has continued to be at the forefront of driving the key objectives of the National Financial Inclusion Strategy (NF‘IS) to reduce the percentage of adult Nigerians that do not have access to financial services from 46.3% in 2010 to 20.0% by 2020.

Consequently, the Corporation has redoubled is efforts by providing an enabling regulatory and supervisory environment that ensures that the hard earned savings of small savers are protected.

Ibrahim noted that the Corporation’s activities through the continuous monitoring and oversight of banks, not only enhances depositors’ confidence in the financial system, but also serves as incentive to the unbanked to access financial services of licensed banks.

 

HOPE MOSES-ASHIKE

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