The Nigeria Deposit Insurance Corporation (NDIC) has raised the maximum coverage for all deposit-taking institutions in Nigeria.
Bello Hassan, the Managing Director and Chief Executive of NDIC, announced this in Abuja during a forum on the review of deposit insurance coverage.
The decision to increase the coverage was made to enhance depositor protection, boost public confidence, promote financial inclusion, and ensure the stability of the financial system.
A study conducted in 2023 by the Corporation revealed that a high percentage of depositors, ranging from 89.20% to 99.99%, were fully insured under the new maximum coverage levels for different bank categories.
Hassan emphasized the importance of periodically reviewing deposit insurance coverage to prevent bank runs and maintain financial stability.
The recent adjustments approved by the NDIC’s Interim Management Committee include:
– Deposit Money Banks (DMBs): Maximum coverage increased from N500,000 to N5,000,000, covering 98.98% of depositors.
– Microfinance Banks (MFBs): Maximum coverage raised from N200,000 to N2,000,000, providing full coverage for 99.27% of depositors.
– Primary Mortgage Banks (PMBs): Maximum coverage increased from N500,000 to N2,000,000, covering 99.34% of depositors.
– Payment Service Banks (PSBs): Maximum coverage raised from N500,000 to N2,000,000, ensuring full coverage for 99.99% of depositors.
– Subscribers of Mobile Money Operators: Maximum coverage increased from N500,000 to N5,000,000 per subscriber per MMO.
The revised deposit insurance coverage aims to strike a balance between protecting depositors and maintaining financial system stability.
The NDIC remains committed to safeguarding depositors and contributing to a secure financial environment.
The adjustments reflect the NDIC’s dedication to adapting to the evolving financial landscape in Nigeria.
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