NDIC Raises Deposit Insurance To N5m, Safeguards 99% Of Depositors

The Nigeria Deposit Insurance Corporation (NDIC) has raised deposit insurance coverage to N5 million, a move that now protects nearly 99 per cent of bank customers nationwide.

Its managing director, Mr Thompson Oludare Sunday, disclosed this yesterday during the NDIC Special Day at the 47th Kaduna International Trade Fair.

He said the enhancement aligned with the NDIC’s mandate to safeguard depositors’ funds and strengthen public confidence in the financial system.

Sunday said depositors in Deposit Money Banks (DMBs), Mobile Money Operators (MMOs) and Non-Interest Banks (NIBs) are now insured up to N5 million per individual, while customers of Payment Service Banks (PSBs), Microfinance Banks (MFBs) and Primary Mortgage Banks (PMBs) enjoy coverage of up to N2 million.

“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.

Represented by Dr Regina Dimlong, assistant director, Communication and Public Affairs Department, NDIC, Sunday explained that in the event of a bank failure, depositors are promptly paid up to the insured limit, adding that depositors with balances exceeding the limit receive liquidation dividends as the assets of the failed bank are realised.

He cited recent claims settlements for customers of the defunct Heritage Bank Limited, Union Homes Plc and Aso Savings and Loans Plc, noting that the use of the Bank Verification Number (BVN) as a unique identifier allowed the NDIC to transfer insured deposits to depositors’ accounts within days of closure.

He urged all depositors to ensure their BVNs are correctly linked to their accounts to facilitate seamless access to funds.

In his remarks, the president of the Kaduna Chamber of Commerce, Industry, Mines and Agriculture (KADCCIMA), Alhaji Farouk Suleiman, praised NDIC for its role in Nigeria’s financial architecture, describing it as a statutory insurer of deposits and a key component of the financial safety net.

He commended the corporation’s consistent efforts to strengthen confidence in the banking system, safeguard systemic stability, and promote public awareness of deposit insurance.

Suleiman said the trade fair remains an important platform for engagement, education, and collaboration among regulators, businesses, investors, and the public.

While acknowledging NDIC’s achievements, the KADCCIMA president observed that a significant portion of Nigeria’s economy operates within the informal sector, including micro-enterprises, traders, artisans, farmers and cooperatives, many of whom remain insufficiently informed about deposit insurance.