NDIC Urges Nigerians To Save With Formal Banking Systems

The Nigerian Deposit Insurance Corporation (NDIC) has called on Nigerians to keep saving their money with formal banking systems because they remain the safest, smartest and most prudent place to save and the only way through which the corporation can protect bank deposits. 

The NDIC also said that such deposits enjoy the benefit of effective regulation and supervision of relevant authorities and take people’s hard-earned money beyond the ambit of illegal fund managers and loan sharks that currently awash the investment landscape and fleece unsuspecting members of the public.

The managing director of NDIC, Bello Hassan, made the call on Thursday during the Corporation’s Special Day at the 34th edition of the Enugu International Trade Fair.

Represented by senior manager NDIC, Toke Othman, the MD said the general public need to avoid investment offers with quick and arbitrarily high returns noting that Corporation adopted participation in the Enugu International Trade Fair over the years, as platform for continuous sensitization of depositors, and the general public on the existence of the Deposit Insurance Scheme (DIS), its advantages, and its limitations.

He said “This is significant to us as it will enhance public confidence in the financial system. We want the general public to know, and reflect always, that their deposits are safe and that in the unusual event of a bank failure, a government agency, the NDIC, is here to protect the depositors, especially the small savers.

“The Corporation protects depositors through the discharge of its mandate in four critical ways namely: by guaranteeing deposits in banks; by supervising the banks in conjunction with the Central Bank of Nigeria (CBN) to ensure that they are run in safe and efficient manner in line with extant laws and regulations, by resolving issues of distress in banks to reduce instances of failure; and by ensuring orderly and efficient liquidation of failed banks to prevent disruptions to the payment system.

“It is worthy to note that the Corporation has been successfully and efficiently discharging its mandates from inception till date, living up to its public policy objectives and contributing to financial system stability. For instance, in the aspect of Deposit Guaranty, we are happy to state that NDIC has been highly responsive in providing coverage to all eligible deposits and accounts as they evolve in our banking system. Apart from depositors of Deposit Money Banks (DMBS), Primary Mortgage Banks (PMBS) and Microfinance Banks (MFBs), the Corporation has also been responsive by extending deposit insurance coverage to depositors of Non-Interest Banks (NIBS), subscribers of Mobile Money Operators (MMOs) and the recently introduced Payment Service Banks (PSBs).

“NDIC likes to reiterate to members of the public, particularly the teaming populace in the Medium, Small and Micro Enterprise (MSME) sector, and others in the informal segment of our economy that the safest, smartest and most prudent place to keep your money is in the formal banking system because the NDIC protects your bank deposits. Such deposits also enjoy the benefit of effective regulation and supervision of relevant authorities, and take people’s hard earned money beyond the ambit of illegal fund managers and loan sharks that currently awash the investment landscape and fleecing unsuspecting members of public.

“However, as the unscrupulous elements get more and more creative in their ignoble acts, and as the NDIC and other regulatory bodies device more ingenious approaches to tackling their menace. It is pertinent for the Corporation to continue to sensitize the public on their expected roles towards protecting their bank deposits.

“Depositors are to ensure their phones have strong password and do not share their bank mobile app password with third parties; ensure no one is watching when they enter their PIN to perform transactions; ensure their token is secure and other parties do not have access to it; and ensure their debit card number and CVV are not exposed to people.