The Nigeria Deposit Insurance Corporation (NDIC) has disclosed that about 99 per cent of depositors in Nigerian banks are fully covered under its enhanced deposit insurance scheme.
The Managing Director and Chief Executive Officer of NDIC, Thompson Oludare, made this known on Wednesday during the NDIC Special Day at the 47th Kaduna International Trade Fair held in Kaduna.
The trade fair, organised by the Kaduna Chamber of Commerce, Industry, Mines and Agriculture, was themed “From Reforms to Results: Economic Transformation through Sustained Local Content Development.”
Represented by Dr Regina Dinlung, Assistant Director in the Communication and Public Affairs Department, Oludare said the theme aligns with ongoing reforms in the financial sector aimed at delivering tangible benefits to Nigerians.
“For over three decades, the Nigeria Deposit Insurance Corporation has played a critical role in protecting depositors’ funds, particularly those of the most vulnerable, from the negative effects of bank failure,” he said.
He explained that the corporation’s mandate includes deposit insurance, supervision of insured institutions, distress resolution and the orderly liquidation of failed banks.
Oludare noted that NDIC works closely with the Central Bank of Nigeria to strengthen risk-based supervision, resolution planning and inter-agency collaboration to safeguard the banking system and minimise systemic disruptions.
He stated that the corporation enhanced the maximum deposit insurance coverage in 2024 to reinforce public confidence.
Under the revised structure, depositors of Deposit Money Banks, Mobile Money Operators and Non-Interest Banks are insured up to ₦5m per depositor per bank. Meanwhile, customers of Payment Service Banks, Microfinance Banks and Primary Mortgage Banks are covered up to ₦2m per depositor per bank.
“This expanded coverage protects about 99 per cent of depositors, underscoring our commitment to safeguarding the savings of Nigerians,” Oludare said.
He added that in the event of a bank failure, insured depositors are paid promptly up to the guaranteed limit. Depositors with balances above the insured threshold receive liquidation dividends as assets of the failed bank are realised.
Citing recent interventions, Oludare referenced the closures of Heritage Bank Limited, Union Homes Plc, and Aso Savings and Loans Plc as examples of improved payout efficiency.
He explained that in those cases, the corporation used depositors’ Bank Verification Numbers as unique identifiers to locate alternate accounts into which claims were transferred, enabling payment within days of closure.
“I therefore urge all depositors to ensure that their BVNs are properly linked to their bank accounts and identity records, as this greatly facilitates seamless and timely access to insured deposits in the event of bank failure,” he said.
Oludare also invited trade fair participants to visit the corporation’s pavilion to obtain information on deposit insurance and ways to avoid fraudulent schemes.
Earlier, President of the Kaduna Chamber of Commerce, Industry, Mines and Agriculture, Alhaji Farouk Suleiman, commended NDIC’s role in safeguarding depositors’ funds.
He described the corporation as a critical financial sector institution whose work, though often behind the scenes, has a profound impact on economic stability and public trust.
