NDIC warns against illegal funds managers

By Chioma Obinagwam

Nigeria Deposit Insurance Corporation (NDIC) has reiterated its warning to the general public on the activities of illegal funds managers.

The warning was given by the Managing Director/ CEO Nigeria Deposit Insurance Corporation (NDIC), Alhaji Umaru Ibrahim while delivery a keynote address on the occasion of the NDIC special day at the 2016 Lagos International Trade fair.

Considering the rate at which the public are patronizing these illegal funds managers, Ibrahim said that the regulatory authorities had set up an inter-agency committee under the Financial Service Regulatory Coordinating Committee (FRSCC) to stem out the nefarious activities of these fraudsters across the country.

According to him, it was worrisome to note that despite repeated advice, many unsuspecting members of the public were still falling victims to the mouth watering interest being offered by these illegal funds managers otherwise known as ‘wonder banks.’

He cautioned the public saying that those who patronize these managers do that at their own risk adding that those mangers were neither licensed with the Central Bank of Nigeria ( CBN) or endorsed by NDIC.

“Once again, I must sound a word of warning that those who patronize these illegal funds managers are doing so at their own risk. For the avoidance of doubt these illegal funds managers or ‘wonder bank’ are neither licensed by CBN nor under the NDIC deposit insurance coverage. Members of the public are therefore advised to patronize only banking institutions that display the NDIC sticker: ‘Insured by NDIC’ in their banking halls or entrances,” he warned.