The Nigeria Deposit Insurance Corporation (NDIC) has reaffirmed its commitment to safeguarding depositors’ funds, announcing that nearly 99% of total deposits in the country’s Deposit Money Banks (DMBs) are now fully covered by insurance.
The Managing Director of NDIC, Bello Hassan, represented by the Director of Performance Management, Bimpe Akande, made this disclosure at the NDIC Day event held during the ongoing 20th Abuja International Trade Fair, themed: “Sustainability: Consumption, Incentives and Taxation.”
According to Hassan, the Corporation currently insures up to ₦5 million per depositor in Deposit Money Banks, while customers of Microfinance Banks (MFBs), Primary Mortgage Banks (PMBs), and Payment Service Banks (PSBs) are insured up to ₦2 million.
“This enhanced deposit insurance coverage ensures that 98.98% of depositors in commercial banks, 99.27% in MFBs, 99.34% in PMBs, and 99.99% in PSBs are fully protected,” he said.
Hassan noted that the increase in maximum insurance coverage reflects the NDIC’s broader efforts to strengthen public confidence, ensure financial stability, and promote financial inclusion, especially for vulnerable groups.
He emphasized that the Corporation continues to work closely with the Central Bank of Nigeria (CBN) to maintain oversight and enforce compliance within the banking sector.
“We are committed to protecting Nigerians’ bank deposits. Working in synergy with the CBN, we aim to ensure regulatory compliance and reinforce trust in the financial system,” he added.
What Happens If a Bank Fails?
NDIC clarified that in the event of a bank failure, depositors with balances within the insured limit would receive prompt reimbursement. For balances exceeding the insured threshold, affected customers are paid from the liquidation of the failed bank’s assets.
These payouts, known as liquidation dividends, are made pro-rata, ensuring depositors receive a fair portion of the recovered funds relative to their uninsured balances.
“Depositors have no reason to panic. Even if their funds exceed the insured limit, they are not left behind,” Hassan assured.
Beware of Ponzi Schemes, NDIC Warns
In a strong advisory, the NDIC boss urged the public to stay away from Ponzi schemes and unlicensed investment platforms, stressing that only funds placed in CBN-licensed financial institutions are covered under the NDIC insurance scheme.
“We advise Nigerians to verify the legitimacy of financial platforms before investing. Only banks licensed by the CBN and insured by the NDIC can guarantee the safety of your money,” he warned.
Also speaking at the event, the President of the Abuja Chamber of Commerce and Industry (ACCI), Emeka Obegolu (SAN), commended NDIC’s efforts in protecting depositors and boosting confidence in the financial sector.
Represented by the ACCI Director-General, Sir Agabaidu Jidani, Chief Obegolu described NDIC as not just a regulator but a strategic partner in national economic development.
“The work NDIC does is critical to financial safety, business growth, and job creation. We’re ready to collaborate further in expanding public awareness around deposit insurance and banking safety,” he said.
He encouraged Nigerians to take full advantage of the protections offered by the NDIC and engage with the institution to better understand how their savings are safeguarded.
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