NDIC raises deposit insurance coverage to N5m, now covers 99% of banks’ deposits

Nigeria Deposit Insurance Corporation (NDIC) has fully insured deposits of about 99 per cent of depositors in Nigerian banks.

It has also raised the deposit insurance coverage to N5 million to protect bank customers nationwide.

Thompson Sunday, its Chief Executive, said this at the NDIC Special Day at the 47th Kaduna International Trade Fair. He said these efforts were in the bid to fulfill the NDIC’s mandate of safeguarding depositors’ funds and strengthening public confidence in the financial system.

The NDIC boss, who was represented by Regina Dinlung, Assistant Director, Communication and Public Affairs Department in the corporation, said depositors in conventional banks, mobile banks and non-interest banks were now insured up to N5 million per individual, while customers of payment service banks, microfinance banks and primary mortgage banks now enjoy up to N2 million coverage.

“The expanded coverage ensures that about 99 per cent of depositors nationwide are fully protected, reinforcing our commitment to financial stability and inclusion,” he said.

Dare said the NDIC had for over three decades played a critical role in protecting depositors’ funds, particularly those of the most vulnerable, from the negative effects of bank failure.

He stressed that the corporation’s mandate encompassed deposit insurance, supervision of insured institutions, distress resolution, and the orderly liquidation of failed banks.

The NDIC executive said the corporation had worked closely with the Central Bank of Nigeria to strengthen risk-based supervision, resolution planning, and inter-agency collaboration to safeguard the banking system and minimise systemic disruptions.

He said the corporation had also consistently ensured that depositors are promptly paid up to the insured limit in the event of a bank failure, while balances exceeding the limit receive liquidation dividends as the assets of the failed bank are realised.

Dare cited recent cases of the defunct Heritage Bank Limited, Union Homes Plc and Aso Savings and Loans Plc, where claims settlements were promptly made to customers.

He urged all depositors to ensure their Bank Verification Number (BVN) are correctly linked to their accounts to facilitate seamless access to funds.
The NDIC boos said the use of BVN, as a unique identifier, had always facilitated the transfer insured deposits by NDIC to depositors’ accounts within days of a bank’s closure.