The Managing Director/Chief Executive Officer, Nigeria Deposit Insurance Corporation (NDIC), Mr Bello Hassan has designated the Deposit Money Bank (DMB) as the safest, smartest and most prudent
place to save money because of NDIC’s protection.
Mr Bello stated this while delivering a speech on the occasion of NDIC’s Special Day at the 34th Enugu International Trade Fair on Thursday, March 30, 2023.
He therefore, advised the members of the public, particularly those in the Medium, Small and Micro Enterprises (MSMEs) sector, and informal segment of the economy to keep their money in the formal banking system.
He noted that 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 said, 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 was 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. Equally important is the need to avoid investment offers with quick and arbitrarily high returns”, he said.
The NDIC boss said, “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)”.
He added that “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 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”.
Bello said, the fair’s theme: “Harnessing Nigerian Human Capital Resources for Global Economic Advancement” speaks volumes about how the Chamber’s programs and vision match with the government’s priorities in this regard.
He said, the 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 limitations.
The NDIC was established in 1989 as a critical component of the nation’s financial system safety-net. The four broad mandates of the Corporation are Deposit Guaranty, Banking Supervision, Failure Resolution and Bank Liquidation.