Kaduna — Reactions keep trailing the closure of wonder banks in Kaduna by the operatives of the Central Bank of Nigeria (CBN) penultimate week. While the CBN is claiming that the closure was done in the best interest of the investing public, the public see the action as a conspiracy between the CBN and the commercial banks, who are losing out to the growing wonder banks.

Following the growth of wonder banks across Kaduna state, the CBN with the assistance of the police on Tuesday, 10th of this month, raided and sealed nine of the banks. They include: Miriam Moses Nigeria Limited, Konquest investment ltd, Global conquest ltd, Double leopard, Desort, Wurricat international ltd, Disok, Bomikvision global ltd and conevest ltd.

For some time now, the rate at which wonder banks are springing up in Kaduna state has surprised many. They come under the guise of alleviating poverty among the masses. They give 100 or 150 percent interest on deposits within 25 days or a month, and they claim to be investing the money in Forex that is foreign exchange.

They distribute their pamphlets in public places. Their patrons cut across all strata in the society ranging from students, lecturers, civil servants, security agents, traders, politicians, okada riders, Bus drivers, mechanics and even bankers. Their customers are not limited to Kaduna alone. People from neighbouring states, come to Kaduna to invest their money in the business.

For many, the coming of Miriam Moses Nigeria Limited, and some other investment companies has done what the government could not do over the years. 'Miriam Moses has succeeded in alleviating poverty among many. He has reduced the level of crime in our community and he has succeeded in putting smiles on the faces of workers of defunct textile factories who were, before his coming, swimming in penury', Mama Tom, a popular restaurant operator in Nassarawa Market, Chikun local government area of Kaduna state, who invested in one of the wonder banks, said.

"Youth who engaged themselves in unwholesome activities, have since changed for good as they struggle, work hard to get money to take to Miriam Moses to deposit, and at the end of the month get a 100 percent gain. You can see that we are now living well in the market, because people are trooping in to buy things because their investments in these financial institutions are paying off. People who are living in rented apartments are now living in theirs courtesy of this man.

"What we want from the government is not the sealing or total closure of these investment houses. We want the government to allow them to continue to operate since they are doing what they, the government could not do. The government should only put in place measures that would not allow these people to run. We want them to remain in business," she said.

A former staff of the New Nigerian, Ango Bali while reacting to a Daily Trust report on the closure said "Your story on the nine wonder banks was not balanced. You should have at least sought for the side of the investors, to know if they are fake. It is just a conspiracy by the conventional banks that may be losing customers. Go to Miriam Moses and see for yourself. He is paying people, and he has been doing this for months, without defaulting."

A politician based in Badarawa, Kaduna North, Mohammed Lawal, who also invested his money in Miriam Moses, urged the CBN to defreeze the accounts of Miriam Moses, so that he can pay his depositors.

"They should please defreeze it so that he can pay people. Many borrowed money to invest in the business. The authority concerned should have mercy and defreeze his accounts, because many lives are depending on it," he said.

Explaining why the wonder banks were closed, CBN branch manager in Kaduna, Alhaji Mohammed Ibrahim Gusau, said the closure was done in the best interest of the masses, and that the wonder banks are into illegal business of receiving deposit from the public.

"They ask innocent Nigerians to bring their deposit and that at the end of 25 or 30 days, they will make 100 or 125 percent profit. What kind of business will yield up to that percent?," he queried.

All their activities are illegal and must be addressed. They will run at the end of the day, because what these so called banks are doing is illegal. And part of the responsibility of the CBN is to ensure financial stability in the economy, which involves registration and supervision of banks, and other financial institutions in Nigeria. We did not conspire with any bank. What we did was part of our constitutional function," he added.

He urged the general public to beware of the banks, and that they should not patronize them. He also said the CBN would not relent in its effort at sustaining raids on identified areas which are used for illegal receipt of deposits from the general public.

Commenting on the activities of wonder banks, the immediate past Head of Department of Economics of the Kaduna state University, Malam Zubairu Tajo Abdullahi, said no business could yield 100 percent profit at the end of a month. He added that they are only capitalizing on the ignorance and greed of the masses, and described the system as pyramiding.

"In order for one to earn as much as 100 percent, there must be a foreign exchange regime that is fluctuating. But for some time now, we have had a stable foreign exchange rate in Nigeria. So, where does the gain come from? They are only working on people's psychology and ignorance. They rely on the gullibility of the public. It is a lie, it is mathematically impossible.

"What they are doing can only last for a short period. It is not sustainable. First, they will be paying regularly. After some time, they will find a means of delaying it, and before you know it, they will close shop. In the 80s, when I was in the banking sector, some dupes in Lagos popularized wonder banks. When the government raided the two room apartment, they were using as an office, the place was filled with cash which made people to know that they were not investing it as they claimed. What is happening now cannot be far from happened then," he said.

In a 15 minute telephone conversation with the Chief Executive Officer of Miriam Moses, Mr. Moses Samanja Audu, he said the CBN has done the right thing by sealing his company. "I don t have any grudge with the CBN, because I don't have a license. I am now working hard to secure license so that I can continue operations," he said.

He said he is into many businesses that are yielding high profit, hence his ability to give 100 percent interest on deposit. "I am into many businesses. As I am talking to you I have given over 2000 people, who registered with me, loans to start businesses. They register with 4,600 naira. At the end of the day, I give them 20,000 naira as loan. I am out to reduce poverty among the ordinary Nigerians. Not too long, I distributed 1,200 bags of rice to widows and widowers. I also spent over 30 million naira to tar Ira road, in Kaduna metropolis, as part of my social responsibility. I renovated many mosques and churches.

"I don't have up to 86 billion naira as people are speculating. What I have in my four accounts is 400 million naira, and my own money inside this amount is more than the deposits I collected from the public. They should please defreeze my accounts, so that I can pay back people's money. I have enough money to pay them. Many people are suffering as a result of the closure. I shed tears, when I went to my office and I saw the way people are feeling. But I take what is happening to me now as a challenge. But I am not bothered," the 35 year old CEO said.

He urged his investors to be patient and pray for the defreezing of his accounts, saying they should not panic since he has enough money to settle them.