The Nigeria Deposit Insurance Corporation (NDIC) has reaffirmed its crucial role in maintaining financial system stability, revealing that 98.98% of deposits in Deposit Money Banks (DMBs) across the country are now fully insured.
This milestone, officials say, reflects the Corporation’s ongoing commitment to depositor protection and its drive to strengthen public confidence in the nation’s banking sector.
Expanding Coverage, Deepening Trust
Speaking during the NDIC Special Day at the 20th Abuja International Trade Fair, themed “Sustainability: Consumption, Incentives and Taxation,” NDIC Managing Director Mr. Thompson Sunday—represented by the Director of Performance Management, Mrs. Bimpe Akande—highlighted the Corporation’s growing role in financial inclusion and deposit protection.
“Currently, the NDIC insures depositors of Deposit Money Banks, Mobile Money Operators, and Non-Interest Banks up to ₦5 million. Depositors of Payment Service Banks, Microfinance Banks, and Primary Mortgage Banks are insured up to ₦2 million,” he said.
According to Sunday, these coverage levels ensure that nearly all Nigerian depositors are protected—98.98% in DMBs, 99.27% in Microfinance Banks, 99.34% in Primary Mortgage Banks, and 99.99% in Payment Service Banks.
Building a Strong Financial Safety Net
Since its establishment in 1989, the NDIC has been a cornerstone of depositor protection in Nigeria. Its expanded insurance framework now shields even the most vulnerable banking customers, particularly small depositors, thereby reinforcing the nation’s financial stability.
“In partnership with the Central Bank of Nigeria (CBN), we are committed to safeguarding bank deposits, ensuring compliance with regulations, and maintaining confidence in the financial system,” Sunday noted. “Our mission—‘Protecting your bank deposits’—remains at the heart of everything we do.”
The recent tenfold increase in insurance limits—from ₦500,000 to ₦5 million for DMBs—aligns Nigeria with global best practices and demonstrates NDIC’s proactive policy approach.
Partnership with the CBN: A Unified Front
The NDIC’s collaboration with the CBN forms the backbone of Nigeria’s financial safety framework. While the CBN oversees monetary policy and bank regulation, the NDIC provides insurance and acts as liquidator when necessary. Together, both institutions work to prevent systemic distress, manage failing banks, and uphold depositor confidence.
This partnership has been instrumental in the early detection and resolution of financial distress, ensuring that Nigeria’s banking system remains sound and resilient despite global economic pressures.
Protection Even in Bank Failures
Addressing fears about potential bank collapses, Sunday assured depositors that the NDIC has a robust reimbursement process. “In the rare event of a bank failure, depositors receive an initial payment up to the insured limit, while any remaining balances are settled through liquidation dividends from the sale of the failed bank’s assets,” he explained.
This system, he added, reflects NDIC’s comprehensive approach—from preventive supervision to post-failure resolution.
Caution Against Ponzi Schemes
The NDIC boss also warned Nigerians to be wary of fraudulent investment platforms promising unrealistic returns. “Always ensure your funds are placed in CBN-licensed banks covered by NDIC insurance,” he cautioned. “This vigilance is vital to safeguarding your hard-earned savings.”
The warning comes amid a rise in unregulated online investment schemes exploiting economic hardships and public appetite for quick financial gains.
Three and a Half Decades of Confidence
For 35 years, the NDIC has evolved from managing banking crises in the 1990s to becoming a modern, proactive regulator. Its reforms—such as the digitization of depositor records, automated claims payments, and public awareness campaigns—underscore its commitment to innovation and public trust.
The Corporation has also been pivotal in resolving distressed banks, reimbursing millions of depositors, and recovering assets—efforts that have prevented systemic contagion and strengthened Nigeria’s financial system.
Private Sector Endorsement
Chief Emeka Obegolu, President of the Abuja Chamber of Commerce and Industry (ACCI), lauded the NDIC for its role in sustaining confidence in the financial sector. Represented by the Chamber’s Director-General, Sir Agabaidu Jidani, Obegolu described the NDIC as “a strategic partner in advocacy and economic development,” aligning with national goals of sustainability and financial inclusion.
He encouraged businesses and individuals to engage with the Corporation and leverage its services for safer financial planning.
Driving Inclusion and Stability
Beyond protecting deposits, the NDIC actively promotes financial inclusion by encouraging citizens—especially in rural areas—to use formal banking channels. Analysts say this assurance of deposit safety is key to expanding Nigeria’s savings base, supporting small businesses, and driving economic growth.
Economist Dr. Okey Uzoho noted, “By protecting nearly all depositors, the NDIC has removed a major psychological barrier to banking. This has made the financial system safer, more credible, and better positioned for growth.”
A Pillar of Financial Stability
As Nigeria faces inflationary pressures and structural reforms, the NDIC’s role in maintaining public trust is more vital than ever. With over 99% of depositors now insured and a proven record of crisis management, the Corporation stands as a pillar of resilience in Nigeria’s financial ecosystem—protecting savings today, and securing confidence for the future.
