The Nigeria Deposit Insurance Corporation (NDIC) has urged Nigerians to increase the amount of money they keep in regulated financial institutions, saying the recent increase in deposit insurance coverage to N5 million has significantly strengthened protection for bank customers.
The Corporation said the revised coverage limit, up from N500,000, now provides full protection for 98.98 per cent of depositors in deposit money banks.
The NDIC said the development should strengthen public confidence in the banking system, encourage greater mobilisation of deposits and promote deeper participation in the formal financial sector.
The Assistant Director, Communication and Public Affairs Department of the NDIC, Adegbenga Fabuyi, made the call at the 2026 Finance Correspondents Association of Nigeria (FICAN) Conference and 36th Anniversary in Lagos.
Deposit mobilisation critical to banking reforms
Fabuyi said stronger deposit protection had become increasingly important amid ongoing reforms in the banking sector, particularly the recapitalisation programme designed to improve the capacity and resilience of Nigerian banks.
He stressed that confidence was central to financial-system stability and that the NDIC’s mandate to protect depositors was an important part of strengthening the banking industry.
According to him, the recapitalisation programme is intended to create a more resilient banking system capable of supporting the Federal Government’s $1 trillion economic ambition.
He added that a stronger banking system could not be achieved without maintaining public confidence in financial institutions.
Recapitalisation does not mean banks lend out capital
The NDIC official also sought to clarify what he described as a misconception surrounding the banking recapitalisation exercise.
Fabuyi explained that the additional capital being raised by banks should not be regarded as money that would automatically be converted into loans for customers.
Rather, he said, customer deposits remain a major source of funds used by banks to provide credit and finance economic activities.
He therefore called for increased mobilisation of deposits, noting that banks would continue to need more funds from customers to support lending.
Fabuyi urged banks, regulators and the media to intensify public education on the importance of keeping funds within regulated financial institutions.
NDIC warns against keeping large cash at home
The official expressed concern over the practice of keeping substantial amounts of cash in homes, farms, rooftops and other informal locations.
He warned that money kept outside the regulated financial system could be exposed to theft, fire and other risks capable of resulting in complete loss.
By contrast, he said, eligible deposits held in insured financial institutions benefit from the protection provided under Nigeria’s deposit insurance framework.
Fabuyi said the new N5 million coverage limit should help ease concerns among Nigerians who may previously have been reluctant to keep significant sums in banks because of fears about the safety of their deposits.
Deposit insurance extends to eligible fintech institutions
Fabuyi also highlighted the NDIC’s role in supporting the growth of Nigeria’s digital financial services industry.
He said the Corporation provides deposit insurance protection to eligible deposit-taking institutions operating within the regulated financial system, including relevant digital financial service providers.
According to him, extending deposit protection to eligible fintech and mobile-money operations would help strengthen confidence as more Nigerians use technology-driven platforms for savings, payments and other financial services.
He said the NDIC’s presence across traditional banking and the digital finance ecosystem was part of broader efforts to promote financial stability.
NDIC seeks stronger media partnership
Fabuyi, speaking on behalf of NDIC Managing Director/Chief Executive Officer Thompson Oludare Sunday, congratulated FICAN on its 36th anniversary and acknowledged the contribution of financial correspondents to public understanding of developments in the banking and financial sectors.
He described the media as a key partner in explaining deposit insurance, banking reforms and developments in fintech to Nigerians.
Fabuyi urged financial journalists to intensify public enlightenment on the revised N5 million deposit insurance limit and the protections available to customers within the regulated financial system.
He said stronger collaboration between the NDIC and the media would help Nigerians better understand banking reforms, available safeguards and the opportunities associated with participating in the formal financial system.
The NDIC maintained that stronger public confidence, increased deposit mobilisation and effective regulation would remain essential to building a resilient banking sector capable of supporting Nigeria’s broader economic ambitions.
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