Nigeria Deposit Insurance Corporation Protects Bank Customers with Higher Coverage

The Nigeria Deposit Insurance Corporation (NDIC) is a vital institution that safeguards bank customers' deposits. It was established in 1988 to protect depositors in the event of bank failures.

The NDIC provides a higher coverage for bank customers, ensuring that their deposits are safe and secure. This coverage is up to N500,000 for individual accounts and up to N5,000,000 for corporate accounts.

With the NDIC's protection, bank customers can now bank with confidence, knowing that their hard-earned money is safe. This has helped to promote financial stability and trust in the banking system.

Deposit insurance coverage is a crucial aspect of protecting depositors' funds in Nigeria. The Nigeria Deposit Insurance Corporation (NDIC) has increased deposit insurance coverage for all licensed deposit-taking financial institutions.

The NDIC managing director and CEO, Bello Hassan, announced the increment at a press briefing in Abuja. This coverage ensures that depositors are reimbursed to a certain limit for their deposits in the failed bank.

Deposit insurance coverage for Deposit Money Banks (DMBs) has been increased from N500,000 to N5 million. This change will now fully cover 98.98% of depositors, significantly up from the current 89.20%.

Microfinance Banks (MFBs) coverage has risen from N200,000 to N2 million, aiming to protect 99.27% of depositors. This is compared to 98.76% under the previous limits.

The revised coverage for Primary Mortgage Banks (PMBs) has been increased from N500,000 to N2 million, ensuring 99.34% of depositors are fully covered. This is up from 97.98% under the previous coverage.

Payment Service Banks (PSBs) coverage has been adjusted from N500,000 to N2 million, covering nearly all depositors at 99.99%.

Mobile Money Operators (MMOs) have seen their pass-through deposit insurance for subscribers jump to N5 million per subscriber.

Here's a summary of the revised deposit insurance coverage:

The Nigeria Deposit Insurance Corporation (NDIC) has made some significant adjustments to its deposit insurance coverage.

The maximum deposit insurance coverage for Deposit Money Banks (DMBs) has been increased from N500,000 to N5,000,000. This change will now fully cover 98.98% of depositors, significantly up from the current 89.20%.

The maximum deposit insurance coverage for Microfinance Banks (MFBs) has been increased from N200,000 to N2,000,000. This will protect 99.27% of depositors, compared to 98.76% under the previous limits.

The coverage for Primary Mortgage Banks (PMBs) has been increased from N500,000 to N2,000,000, ensuring 99.34% of depositors are fully covered, up from 97.98%.

Payment Service Banks (PSBs) coverage has been adjusted from N500,000 to N2,000,000, covering nearly all depositors at 99.99%.

The pass-through deposit insurance for Mobile Money Operators (MMOs) subscribers has jumped to N5,000,000 per subscriber, aligning it with the coverage level for DMBs.

Here's a summary of the adjustments:

For Nigerian bank customers, the increased deposit insurance coverage is a game-changer. The NDIC will now reimburse eligible depositors up to N5 million in Deposit Money Banks (DMBs) and N2 million in Microfinance Banks (MfBs) and Primary Mortgage Banks (PMBs).

This higher coverage ensures that a larger portion of your money is protected in the event of a bank failure, thereby boosting depositor confidence in the banking system. With the maximum insurance coverage raised substantially, customers can feel more secure about the safety of their deposits.

The new coverage levels are designed to fully insure a higher percentage of depositors. For instance, the coverage for DMBs now fully protects 98.98% of depositors, up from 89.20%. This change means that almost all depositors are completely covered by the NDIC's insurance, reducing their risk significantly in case their bank collapses.

In the event of a bank failure, eligible depositors can expect to receive reimbursement from the NDIC. Depositors whose claims exceed the maximum insured sums can receive liquidation dividends on a pro-rata basis.

Here's a summary of the maximum insured amounts:

With increased deposit insurance, individuals and businesses might be more inclined to save their money in banks, contributing to higher levels of financial inclusion. Knowing that their deposits are secure, even those who previously underutilized banking services due to fear of potential bank failures might now be more likely to engage with the banking system.