The Nigeria Deposit Insurance Corporation (NDIC) has increased deposit insurance coverage for all licensed deposit-taking financial institutions.
NDIC Managing Director/Chief Executive Bello Hassan announced this at briefing in Abuja.
He said the increment applies to Deposit Money Banks (DMBs), Microfinance Banks (MFBs), Primary Mortgage Banks (PMBs), Payment Service Banks (PSBs) and Mobile Money Operators (MMOs).
Hassan stated: “By increasing deposit insurance coverage, we are ensuring that depositors are better protected in the unlikely event of a bank failure.”
Key increases in Deposit Insurance Coverage: Deposit Money Banks (DMBs) coverage has jumped from N500,000 to N5,000,000, providing full coverage for 98.98 percent of depositors compared to the previous 89.20 percent.
Microfinance Banks (MFBs) coverage has risen from N200,000 to N2,000,000, offering full coverage for 99.27 percent of depositors (up from 98.76 percent) and significantly increasing the value of covered deposits (from 14.38 percent to 34.43 percent of total deposits).
For Primary Mortgage Banks (PMBs), the maximum coverage has been raised from N500,000 to N2,000,000, ensuring full coverage for 99.34 percent of depositors (up from 97.98 percent) and boosting the value of covered deposits (from 10.77 percent to 21.04 percent of total deposits).
Payment Service Banks (PSBs) coverage has been increased from N500,000 to N2,000,000, providing near-complete protection (99.99 percent) for depositors and raising the value of covered deposits to 43.10 percent of the total (from 40.60 percent).
For Mobile Money Operators (MMOs), the maximum Pass-through deposit insurance coverage has been raised to N5,000,000 per subscriber per MMO, aligning it with the coverage level for DMBs.
Deposit insurance coverage levels for all licensed deposit-taking financial institutions refer to the amount of protection provided to depositors in deposit -taking financial institutions in case the financial institution fails or goes bankrupt.
This coverage ensures that depositors will be reimbursed up to a certain limit for their deposits in the event of a bank failure.
The increased deposit insurance coverage levels will take effect immediately, offering Nigerians greater peace of mind when saving their money with licensed financial institutions.
The move is expected to strengthen the banking system and encourage further financial inclusion within the country.
