Barring unforeseen circumstances, the nefarious activities of MMM Nigeria and other wonder banks operating in the country may soon run into a hitch as regulatory authorities have unveiled plan to put them out of circulation.
According to the Managing Director of the Nigeria Deposit Insurance Corporation (NDIC), Alhaji Umaru Ibrahim, the regulators have set up a Committee to stem the nefarious activities of the fraudsters across the country.
Umaru, who disclosed this Monday during the NDIC Special Day at the 2016 Lagos International Trade Fair, lamented that despite repeated warnings, Nigerians are still trooping out to patronise the illegal fund managers.
Represented by the Director, Claims Resolution Department of the Corporation, Mr Bello Shittu, the NDIC boss said the Corporation stands to enlighten Nigerians on the benefits of savings culture, advising them to patronise only banking institutions that display the NDIC sticker.
His words: “I wish to sound a word of caution to members of the public on the activities of illegal fund managers, otherwise known as Wonder Banks. It is worrisome to note that despite repeated advice, many unsuspecting members of the public are still falling victims to the mouth-watering interest being offered by these illegal fund managers.Once again, I must sound a word of warning that those who patronise these illegal funds managers are doing so at their own risk. For the avoidance of doubt, these illegal fund managers or wonder banks are neither licensed by CBN nor under the NDIC deposit insurance coverage. Members of the public are therefore advised to patronise only banking institutions that display the NDIC sticker: “Insured by NDIC” in their banking halls or entrances. However, the regulatory authorities have set up an inter-agency committee under the Financial Services Regulatory Coordinating Committee(FRSCC) to stem the nefarious activities of these fraudster across the nation”.
Umaru stated that the Corporation has been protecting the interest of depositors by ensuring the safety of their bank deposits as one of the three pillars of financial safety net.
He explained that the economically active poor require regular reassurance that the deposit taking financial institutions are safe and that they have access to their money whenever they need it. “In line with the key objectives of National Financial Inclusion Strategy(NFIS) to reduce the percentage of adult Nigerians without access to formal banking services from 46.3 per cent in 2010 to 20 per cent in 2020, the NDIC plays a crucial role here by ensuring that the hard earned funds of small savers are protected”.