NDIC extends cover to MMOs subscribers

Following the licensing of 24 Mobile Money Operators (MMOs) by the Central Bank on Nigeria (CBN), the Nigeria Deposit Insurance Corporation (NDIC) said it has resolved to extend its deposit insurance to the individual subscribers of the MMOs in form of pass-through deposit insurance.

The corporation stated that the rationale behind its decision was to engender confidence of the public in subscribing the products of the MMOs adding that the framework for making the pass-through insurance scheme operational was currently being finalized by the corporation.

Speaking at the 2014 Lagos International Trade Fair, the Managing Director, NDIC Alhaji Umaru Ibrahim who made the disclosure stated: ” You might recall the role of the regulatory framework for mobile payment services in Nigeria which is aimed at revolutionizing the Nigeria payment system in line with global developments as well as facilitating financial inclusion in the country.

“The development has led to the licensing of 24 Mobile Money Operators by the CBN.

In order to e gender confidence of the public in subscribing the products of the MMOs, the NDIC has considered as imperative extension of deposit insurance to individuals subscribers of the MMOs”.

Ibrahim who was represented by the Head, Strategy Development Department NDIC, Dr. Kachollam Gang assured that NDIC as a deposit insurer had also been effectively responding to all emerging issues in the global financial inclusion, suitable banking and extension of deposit insurance coverage to depositors of non-interest bank.

NDIC boss assured that the corporation was not unaware of the perennial problems between the customers and their banks, ranging from arbitrary bank interest charges, account balances manipulation to outright frauds and forgeries adding that while the banks have taken some steps in addressing the problems, the corporation has established help desk to assist the customers.


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