Ibrahim Calls Attention of Public Against Operations of Illegal Fund Managers

Kindly Share This Story:

Millions Depositors Protected Billions Naira Paid Out

By Amehnews

 

Speaking during the NDIC special day at ongoing Lagos International Trade Fair, Umaru Ibrahim, the managing director/chief executive, The Nigeria Deposit Insurance Corporation (NDIC) said since it commenced operations in 1989, the NDIC had been responding creditably well to these emerging developments in the global financial system.

 
Ibrahim who did not hid his feeling said it is equally important to seize this opportunity to once again advise members of the public against patronizing illegal fund managers, also known as “wonder banks” who offer extra-ordinary interest rates on deposits or investments only to disappear after collecting the deposits or investments from unsuspecting members of the public. These illegal operators are not licensed by the Central Bank of Nigeria (CBN) and as such are not under the NDIC insurance cover, he added.

 
The managing director pointed out that this advice becomes necessary in view of the continued existence of these illegal operators in different forms and styles in various parts of the country. Sometimes many people who often approach the corporation to seek redress after failing victims, he stressed.

 
The managing director keynote address was delivered at the event on Saturday, November 14, by Bashir Dada Umaru, a director, Asset Management Department and coordinator, Lagos office.

 

Ibrahim commended the president and executive members of the Lagos Chamber of Commerce and Industry (LCCI) for another remarkable achievement in organizing this year’s edition of the Lagos international trade fair, with the theme: “Enhancing Value Addition in the Non-Oil Economy” which once again demonstrated its enviable position in collaborating with all stakeholders to diversify the nation’s economy from consumption and Oil based.

 

The NDIC is proud to associate with these noble objectives which are also in consonance with its mandate and mission. The mission statement is to protect bank depositors and contribute to the stability of the financial system through deposit guarantee, effective banking supervision, prompt payment of guaranteed sums, failure resolution and orderly liquidation of closed financial institutions. The objective of prompt payment of guaranteed sums to depositors is primarily to reduce the impact of bank failure and enhance public confidence in the nation’s banking system.

 

“The corporation’s consistent participation at the Lagos international trade fair provides a unique platform to enhance public awareness on the benefits and limitations of the deposit insurance system (DIS) in Nigeria.

The trade fair is also an avenue to showcase the landmark achievements of the corporation in the last twenty six (26) years of its existence.”

 

Ibrahim made it cleared that “is it pertinent to refresh your minds that NDIC was established by the Federal Government through NDIC Decree number 22 of 1988 (now repealed and replaced with NDIC Act 16 of 2006) to operate the deposit insurance scheme in Nigeria. He said the DIS is one of the pillars of the financial safety-net that is designed to protect small and uniformed bank depositors as well as facilitate safety, soundness and stability of the banking system.

Lion Prime  2-01

 

In his earlier opening remark, the president, LCCI, Aderemi Bello said the chamber is drawing attention to the need to reposition and diversify the Nigerian economy through value additions in the Nigeria non-oil sector with a view to achieving industrialization which will enable the nation to earn more foreign exchange from commodities and processing in Nigeria.

 

Bello pointed out that statistics released by NDIC recently indicated that a total of 10612 fraud cases were reported in banks 2014 as against 3786 in 2013, showed an increase of 183 percent value N25.61bn to N21.80bn in the previous year, we join voices with the corporation in seeking for necessary amendments to its extant law that could boost the performance of the corporation’s core mandates.


Kindly Share This Story:

Related Post

Leave a Reply

Your email address will not be published. Required fields are marked *

amehnews greetings

x
%d bloggers like this: