NDIC Boss Warns Nigerians On Investment In Bitcoin, Other Virtual Currencies

The Managing Director of the National Deposit Insurance Corporation, Mr. Ibrahim has reacted to the issue of investment in digital products and currencies such as bitcoin and other virtual currencies currently trending.

Addressing journalists as part of activities to kick-start events scheduled to commemorate the 30th anniversary of the corporation, Ibrahim said Nigerians need to be wary of investing in virtual currencies.

On the issue of virtual currency which many Nigerians have keyed into for financial rewards, the MD, who was represented by Director, Corporate Communication and Public Affairs, NDIC, Dr. Sunday Oluyemi, maintained that though anyone was at liberty to invest in digital products, it should be undertaken with utmost caution as the corporation currently do not provide guarantee for operations in the virtual currency world.

But he said subscribers of licenced mobile money operators are covered by NDIC in any event of failure.

Meanwhile, Ibrahim, disclosed that to date, the NDIC had paid a cumulative sum of over N11.92 billion to depositors of failed financial institutions.

He said the sum N8.25 billion was paid as insured amount to 442,999 depositors of closed Deposit Money Banks (DMBs); while over N2.97 billion was also disbursed to 83,415 depositors of closed microfinance banks (MFBs) as well as over N70.53 million paid to 869 depositors of closed (primary mortgage banks (PMBs).

Nevertheless, the MD said the commemoration of its 30th anniversary provides an excellent opportunity to undertake a comprehensive review of NDIC’s past legacies and a platform to fine-tune its vision and mission as well as to cast a searchlight on the future, particularly the challenges and opportunities.

The corporation was established in March 1989 following the promulgation of Decree No. 22 of 1988, now replaced with NDIC Act 16 of 2006.

The public policy objectives of the corporation are to contribute to financial system stability as well as to protect small and less financially sophisticated depositors by providing an orderly means of resolution and compensation in the unlikely event of failure of their insured financial institutions.