The Nigeria Deposit Insurance Corporation (NDIC) has confirmed that approximately 99 per cent of depositors in Nigerian banks are now fully covered under its enhanced deposit insurance scheme, reaffirming the protection of public savings. This assurance was delivered by the NDIC’s Managing Director/Chief Executive, Mr. Thompson Sunday, during the corporation’s special day at the 47th Kaduna International Trade Fair on Wednesday.
Speaking through Assistant Director of Communication and Public Affairs, Regina Dinlung, Sunday highlighted that the increased coverage is a direct outcome of the 2024 revision of the corporation’s mandate. Under the new structure, depositors in Deposit Money Banks, Mobile Money Operators, and Non-Interest Banks are insured up to a maximum of N5 million per depositor per bank. For Payment Service Banks, Microfinance Banks, and Primary Mortgage Banks, the insured limit is N2 million per depositor per bank.
Sunday explained that the scheme’s expanded reach protects the vast majority of Nigerian depositors. In the event of a bank failure, covered depositors are paid promptly up to the insured limit, while those with funds exceeding the threshold may receive liquidation dividends as the failed institution’s assets are realised. He cited the recent resolutions of Heritage Bank Limited, Union Homes Plc, and Aso Savings and Loans Plc as examples of improved payout efficiency, noting the NDIC’s use of the Bank Verification Number (BVN) to trace and credit depositors within days.
He urged all depositors to ensure their BVNs are correctly linked to their accounts, as this facilitates seamless and timely access to insured funds. The NDIC boss reiterated the corporation’s commitment to strengthening public confidence and the nation’s economic resilience through robust deposit protection.
Sunday noted that the fair’s theme, “From Reforms to Results: Economic Transformation through Sustained Local Content Development,” aligns with ongoing financial sector reforms aimed at delivering tangible benefits. He commended the Kaduna Chamber of Commerce, Industry, Mines and Agriculture for sustaining the fair, describing it as a catalyst for innovation, business networking, and financial sector sensitisation.
The President of the Kaduna Chamber, Alhaji Farouk Suleiman, underscored NDIC’s critical role in safeguarding depositor funds, particularly during periods of economic pressure. He praised the corporation’s participation as evidence of its commitment not only to regulation but also to public enlightenment and stakeholder engagement. NDIC’s work, though often behind the scenes, has a profound impact on economic stability, Suleiman added.
For over three decades, NDIC has operated under a mandate that includes deposit guarantee, supervision of insured institutions, distress resolution, and orderly liquidation. The agency collaborates closely with the Central Bank of Nigeria to enhance risk-based supervision and resolution planning, underpinning its tagline, ‘Protecting Your Bank Deposits.’
The corporation’s assurance of coverage for 99 per cent of depositors aims to bolster financial inclusion and stability, reinforcing that Nigerian savings remain secure within the formal banking system.
