99% of Nigerian Depositors Fully Insured, Says NDIC

The Nigeria Deposit Insurance Corporation (NDIC) has assured Nigerians that about 99 per cent of depositors in the country’s banking system are fully protected under its revised deposit insurance framework.

The Managing Director and Chief Executive of NDIC, Mr. Thompson Oludare Sunday, gave the assurance during the corporation’s Special Day at the 47th Kaduna International Trade Fair, where he reaffirmed the agency’s commitment to safeguarding depositors and strengthening confidence in the nation’s financial system. According to him, the high level of coverage reflects recent upward reviews of the maximum insured limits across different categories of financial institutions. Under the enhanced framework, depositors in Deposit Money Banks, Non-Interest Banks and Mobile Money Operators are insured up to ₦5 million per depositor per bank. Meanwhile, customers of Microfinance Banks, Primary Mortgage Banks and Payment Service Banks enjoy insurance coverage of up to ₦2 million per depositor per institution. He explained that the review was designed to protect the vast majority of small and medium-scale depositors, who make up the bulk of account holders in the country. With the current coverage levels, approximately 99 per cent of depositors are fully insured, leaving only a small fraction of high-value accounts above the insured threshold. The NDIC boss emphasized that the corporation remains committed to ensuring prompt reimbursement to insured depositors in the event of bank failure. He added that improvements in the payout process, including the use of the Bank Verification Number system, have enhanced the speed and efficiency of payments, enabling insured sums to be credited directly into alternative accounts of affected depositors. Sunday also warned Nigerians against patronising unlicensed financial institutions and Ponzi schemes, stressing that such investments are not covered by deposit insurance.