The Nigeria Deposit Insurance Corporation (NDIC) has advised members of the public, particularly operators in the Medium, Small and Micro Enterprise (MSME) sector, as well as others in the informal segment of the economy to safeguard by embracing the formal banking system

This it said appear to be the safest, smartest and most prudent place to save money

because the NDIC fully protects their bank deposits.

Managing Director and Chief Executive Officer, MD/CEO, of the Corporation, Bello Hassan, while speaking on NDIC day at the ongoing 34th Enugu International Trade Fair, 2023, noted that in the aspect of Deposit Guaranty, the NDIC has been highly responsive in providing coverage to all eligible deposits and accounts as they evolve in the banking system.

Apart from depositors of Deposit Money Banks (DMBs), Primary Mortgage Banks (PMBs) and Microfinance Banks (MFBs), the Corporation, Hassan, said 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).

According to him, “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 went further to say 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.

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.” Hassan advised.

Equally important is the need to avoid investment offers with quick and arbitrarily high returns, warned the MD.

Commenting on the theme of the fair, Hassan said, the fair’s theme “Harnessing Nigerian Human Capital Resources for Global Economic Advancement” speaks volumes about how your programs and vision match with the government’s priorities in this regard.

“Also for us in NDIC, it is instructive to note the strong relationship between our mandate and the theme of this year’s fair. By discharging our public policy objectives of protecting depositors in the event of bank failures and further offering a measure of safety for the banking system, thereby creating an enabling environment for the financial system to appropriately support the economic advancement of our great nation.” he said.

He recalled that the NDIC was established in 1989 as a critical component of the nation’s financial system safety-net.

According to him, The four broad mandates of the Corporation are Deposit Guaranty, Banking Supervision, Failure Resolution and Bank Liquidation.

Speaking further 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 its limitations. 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.”

Hassan, also pointed out that 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.” Hassan concluded.