FG Set To Shut Down MMM, Other Wonder Banks In Nigeria

The Federal Government of Nigeria is on the verge to wield the big stick on the insupportable activities of MMM and other wonder banks operating in the country – as regulatory authorities have unveiled plan to put them out of circulation.

Speaking on Monday, the Managing Director of the Nigeria Deposit Insurance Corporation (NDIC), Alhaji Umaru Ibrahim, stated that the regulators have set up a Committee to stem the nefarious activities of the fraudsters across the country.

Speaking during the NDIC Special Day at the 2016 Lagos International Trade Fair, the NDIC boss griped that in spite of pleas and warnings, Nigerians are still patronising the illegal fund managers.

Represented by the Director, Claims Resolution Department of the Corporation, Mr Bello Shittu, the NDIC boss, however, warned that all those who patronise these illegal funds managers are doing so at their own risk.

The Sun quoted him as saying:

“I wish to sound a word of caution to members of the public on the activities of illegal fund managers, otherwise known as Wonder Banks. It is worrisome to note that despite repeated advice, many unsuspecting members of the public are still falling victims to the mouth-watering interest being offered by these illegal fund managers.

Once again, I must sound a word of warning that those who patronise these illegal funds managers are doing so at their own risk. For the avoidance of doubt, these illegal fund managers or wonder banks are neither licensed by CBN nor under the NDIC deposit insurance coverage.

Members of the public are therefore advised to patronise only banking institutions that display the NDIC sticker: “Insured by NDIC” in their banking halls or entrances. However, the regulatory authorities have set up an inter-agency committee under the Financial Services Regulatory Coordinating Committee (FRSCC) to stem the nefarious activities of these fraudster across the nation”.

This is coming barely a week after the Central Bank of Nigeria (CBN) warned Nigerians against patronising the scheme, MMM.

The Apex bank, via its head of the consumer protection, Kadija Kassim, stated that their activities were not regulated by it or any verified institution.

Kassim’s warning comes barely after the Minister of Solid Minerals and Steel Development, Dr. Kayode Fayemi, dissociated himself from the scheme, saying he has nothing to do with it or any other online financial aid community, projects or contracts.