The Nigeria Deposit Insurance Corporation (NDIC) has announced a substantial increase in the maximum deposit insurance coverage for various banking sectors.
Effective immediately, the NDIC’s decision elevates the maximum coverage from N500,000 to N5 million for Deposit Money Banks (DMBs), ensuring enhanced protection for depositors across the nation.
Bello Hassan, the Managing Director of NDIC, unveiled the development at a press conference held in Abuja. He underscored the profound impact of this decision, highlighting its immediate implementation and its pivotal role in safeguarding depositors’ interests.
Hassan elaborated, stating, “For Deposit Money Banks, the increase of the maximum deposit insurance coverage from N500,000 to N5,000,000, would provide full coverage of 98.98% of the total depositors compared with the current cover of 89.20%. In terms of the value of deposit covered, the revised coverage would increase the value of deposits covered by deposit insurance to 25.37% compared with the current cover of 6.31% of the total value of deposits.”
The NDIC’s initiative extends beyond DMBs, encompassing primary mortgage banks and subscribers of Mobile Money Operators (MMOs). The coverage for primary mortgage banks has been elevated from N500,000 to N2,000,000, ensuring comprehensive protection for 99.99% of total depositors.
Additionally, subscribers of MMOs will now enjoy an increased maximum pass-through deposit insurance coverage, soaring from N500,000 to N5,000,000 per subscriber.
