The Nigerian Deposit Insurance Corporation (NDIC) has revealed that 98% of Nigerian depositors with financial institutions have been fully insured.
The Managing Director/Chief Executive of NDIC Mr. Thompson Oludare Sunday stated this at the NDIC day during the ongoing Abuja international trade fair with the theme: “Fair, “Resilience: Trade, Taxation and the Economy.”
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He said the theme speaks directly to the realities of an economy undergoing profound transformation through bold reforms aimed at building a stronger, more resilient and productive economic structure, in line with the Federal government’s vision of a $1 trillion economy by 2030.
“Through our mandate of deposit guarantee, bank supervision in collaboration with the Central Bank of Nigeria, failure resolution and bank liquidation, the NDIC has worked to ensure that the banking system remains safe, sound and resilient.
“To strengthen confidence in the banking system, the Corporation enhanced its deposit insurance coverage in 2024 with the maximum insured limit increased to N5 million per depositor per Deposit Money Bank (DMB) and Mobile Money Operator (MMO), and N2 million per depositor per Microfinance Bank (MFB), Primary Mortgage Bank (PMB) and Payment Service Bank (PSB).
“This significant enhancement provides full coverage for over 98 per cent of depositors across the insured institutions, thereby protecting households, small businesses and other vulnerable depositors from the immediate consequences of bank failure,” he said.
The NDIC MD further noted that for depositors whose balances exceed the insured limits, the NDIC continues to pay liquidation dividends from recoveries realised through the recovery of debts owed to the failed institutions as well as the disposal of their physical assets. Our objective is straightforward: no depositor should lose confidence in the banking system merely because an insured institution has failed.
He added that “NDIC is also transforming the way depositors are reimbursed. Through the deployment of technology, including the Bank Verification Number (BVN), Single Customer View (SCV), NIBSS infrastructure and other digital solutions, the Corporation has moved from cumbersome, manual processes towards faster and seamless reimbursement.
“Today, verified depositors of failed banks receive their insured deposits within days of bank closure.”
Consequently, he said the Corporation has continued to re-set and strengthen its institutional framework in line with global best practices.
“These initiatives include the deployment of Risk-Based Supervision (RBS), an enhanced Differential Premium Assessment System (DPAS), the Single Customer View (SCV) Framework, a full Distress Resolution suites, and the Bank Liquidation Management System (BLMS), alongside stronger inter-agency collaboration, particularly with the Central Bank of Nigeria and other members of the financial safety net architecture,” he said.