NDIC says depositors’ money safe in formal banking system

Nigeria Deposit Insurance Corporation (NDIC) has reiterated that depositors’ money kept in the banking sector is safe, stressing that such depositors also enjoy the benefit of effective regulation and supervision of relevant authorities.

This was disclosed by the Managing Director/Chief Executive of NDIC, Bello Hassan on Thursday at the 34th Enugu International Trade Fair in Enugu State.

He said: “Arising from the foregoing, the 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.”

He stated that some unscrupulous elements get more creative in their ignoble acts, stressing that the corporation and other regulatory bodies device more ingenious approaches to tackling their menace.

He noted that the Corporation continued 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. Equally important is the need to avoid investment offers with quick and arbitrarily high returns,” he added

He said 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). 

“Depositors of DMBs, PMBs, PSBs and subscribers of MMOs are insured up to maximum limit of N500,000.00 per depositor per bank while those of MFBs are guaranteed up to a maximum limit of N200,000.00 per depositor per bank,” he added.