The Nigeria Deposit Insurance Corporation (NDIC) has intensified its sensitisation campaigns as part of ongoing efforts to educate bank customers in the informal sector on deposit protection and the process of recovering unclaimed funds.
The Corporation held the ‘NDIC Nyanya Terminal Park, Focus Group Discussion’ in Abuja on Wednesday. It brought together road transport workers to raise awareness about its operations and reassure them that their deposits in licensed banks are protected—even in the rare event of a bank failure.
Speaking during the Focus Group Discussion with the Road Transport Employers Association of Nigeria and the National Union of Road Transport Workers, themed From Savings To Security: NDIC Protects What Matters Most, the assistant director of the Communication and Public Affairs Department of NDIC, Adegbenga Fabuyi, emphasised the campaign’s importance.
“Most small-scale transporters don’t know the protection they enjoy under deposit insurance, making them vulnerable to fraudsters and Ponzi schemes. That is why we must engage them directly beyond mass media to give detailed information and receive feedback,” he said.
Fabuyi highlighted that the campaign goes beyond small shippers to include various sectors such as market traders, motor spare parts dealers, automobile technicians, and even professional groups like lecturers and judges. He pointed out,
“Even educated professionals, including some bank workers, do not fully understand NDIC’s role or the protection available to depositors.”
On the coverage specifics, Fabuyi explained, “Deposits up to N5 million in commercial banks are insured and payable promptly in case of bank failure.
For microfinance and mortgage banks, deposits up to N2 million are covered. Mobile money operators are licensed, but they are not banks. We are working to clarify the protections available in that sector.”Transport workers expressed gratitude for the initiative.
One participant said, “Before this session, I didn’t know our mobile account money was protected. Now I feel more confident leaving my money in official accounts rather than keeping cash that can be lost or stolen.”
Another added, “Many of us here trusted individuals or money collectors, but with this information, we understand the risks and the benefits of regulated financial services.”Fabuyi warned against keeping money in unsafe places, “People should not keep their savings at home where theft, fire, or floods can destroy them. Using regulated banks is safer, especially banks with the NDIC’s insurance sticker. This shows the government protects your deposits.”
He also cautioned about fraudulent schemes promising quick, unrealistic returns: “If anyone tells you they can double your money in 30 days, be very sceptical. No legitimate bank or business can offer such a promise.”The NDIC continues to work closely with the Central Bank of Nigeria to supervise banks and ensure depositors’ safety. Fabuyi advised, “Open accounts in multiple banks to diversify your risk. If a bank fails, your insured deposits at each bank are protected up to the insured limit.
”This dedicated sensitisation is crucial in building financial literacy and trust among Nigeria’s small-scale transporters and other vulnerable groups, helping to reduce financial scams and encourage formal banking practices.
Recall that at a similar programme held for market women, men, youths, and other small business operators, in Wuse Market, last week, the NDIC head of Communication and Public Affairs, Hawwau Gambo, had explained that the outreach is part of a pilot initiative targeting traders and customers to improve financial literacy and inclusion.
Gambo noted that while the informal sector is crucial to the success of Nigeria’s financial inclusion agenda, its members’ awareness of deposit insurance remains very low.
“This engagement is part of our strategy to increase public understanding of deposit insurance, especially among vulnerable groups not usually reached through mainstream public awareness campaigns,” she said.
“We chose trader associations like this one because they represent both small savers and informal corporate entities.”
Mrs Gambo also emphasised that, beyond raising awareness, the NDIC is working to identify individuals who may have unclaimed deposits in failed banks.
“It’s about financial inclusion and trust-building. We are here to help reconnect people with unclaimed funds. This pilot project is taking place in three locations, and based on our findings, we plan to scale it up nationwide.”
She stressed the importance of educating the public, particularly small savers, who are often vulnerable to misinformation about the safety of their funds in banks.
“When you put your money in the bank, they use it to give loans and invest in other activities. That’s how banking works. But sometimes, things can go wrong. So who ensures that your money is safe? That’s what the NDIC does — we monitor how banks handle your deposits and ensure they’re accountable.”
Citing the example of the recently failed Heritage Bank, Gambo reminded the traders of the NDIC’s role: “If a bank fails, NDIC steps in to insure and pay back your deposits, up to the guaranteed amount. That’s why saving your money is important only in banks licensed by the Central Bank of Nigeria (CBN) and covered by NDIC insurance.”
She further noted that depositors do not need to pay for NDIC coverage themselves, “As long as the bank is licensed, the NDIC coverage is automatic. The banks pay the insurance premium on your behalf. Once you save your money in the bank, it becomes protected — because NDIC is there for you.”
