The Nigeria Deposit Insurance Corporation (NDIC) has assured Nigerians that their savings in licensed banks are safe and fully protected under the nation’s deposit insurance scheme.
Speaking during the NDIC Special Day at the 20th Abuja International Trade Fair, themed “Sustainability: Consumption, Incentives, and Taxation,” the corporation’s Managing Director, Mr. Thompson Sunday, said over 98 per cent of all bank deposits in the country are fully insured.
Represented by the Director of Performance Management, Mrs. Bimpe Akande, Sunday explained that the NDIC’s current insurance coverage protects 98.98% of total deposits in Deposit Money Banks (DMBs), while protection in other financial institutions such as microfinance and mortgage banks exceeds 99 per cent.
“This enhanced coverage ensures that 98.98% of total depositors in Deposit Money Banks, 99.27% in Microfinance Banks, 99.34% in Primary Mortgage Banks, and 99.99% in Payment Service Banks are protected,” he said. “We remain committed to safeguarding Nigerians’ savings and maintaining public confidence in the financial system in partnership with the Central Bank of Nigeria.”
Sunday noted that depositors of Deposit Money Banks, Mobile Money Operators, and Non-Interest Banks are insured up to ₦5 million per depositor, while those with Payment Service Banks, Microfinance Banks, and Primary Mortgage Banks are covered up to ₦2 million.
He added that customers whose deposits exceed the insured limits are also entitled to liquidation dividends in the event of a bank failure, paid from the sale of the failed bank’s assets and recovered debts.
Caution Against Fraudulent Investment Schemes
The NDIC boss also issued a stern warning to Nigerians against patronising Ponzi schemes and unlicensed financial platforms that promise unrealistic returns.
“Always ensure your funds are placed only in banks licensed by the Central Bank of Nigeria,” he advised. “All such banks are covered by NDIC’s deposit insurance scheme. Any platform not licensed by the CBN puts your money at serious risk.”
He emphasised that the NDIC’s ongoing public awareness initiatives are aimed at educating Nigerians about the importance of financial safety and the dangers of illegal investment schemes.
The Nigeria Deposit Insurance Corporation, established in 1988, serves as a safety net for bank depositors and a stabiliser for the financial system. Its role includes protecting depositors in the event of bank failures and promoting confidence in the Nigerian banking industry.
