NDIC Confirms 99% of Nigerian Depositors Are Now Protected

The Nigeria Deposit Insurance Corporation (NDIC) has confirmed that around 99 per cent of Nigerian bank depositors are now protected under its improved deposit insurance system.

Senior officials from the NDIC shared this assurance during public events this week at the Corporation’s Special Day at the 47th Kaduna International Trade Fair. This is a town hall meeting with stakeholders in Enugu.

Expanded Coverage to Protect Small Savers

The NDIC reported that the new insurance coverage guarantees deposits of up to ₦5 million per depositor at Deposit Money Banks (DMBs), Mobile Money Operators (MMOs), and Non‑Interest Banks (NIBs).

Depositors at Payment Service Banks, Microfinance Banks, and Primary Mortgage Banks receive coverage of up to ₦2 million.

Dr. Kabir Katata, NDIC’s Executive Director (Operations), explained that this policy aims to protect a wide range of small savers and promote financial inclusion across Nigeria. “This expanded coverage protects about 99 per cent of depositors,” he said.

He highlighted the Corporation’s mission to safeguard depositors’ funds and strengthen confidence in the banking sector.

Dr. Katata also clarified that if a bank fails, depositors would quickly receive reimbursement up to the guaranteed limit. Any amounts over the insured limit would be paid later as liquidation dividends once the bank’s assets are sold and debts are settled.

Leveraging Technology for Faster Payouts

The NDIC also pointed out improvements in its payout processes. By using the Bank Verification Number (BVN) system, the Corporation can track depositors’ other bank accounts. They can also transfer insured funds to them within days after failing banks close.

Mr. Thompson Oludare Sunday, Managing Director/CEO of NDIC, reinforced this message at the Kaduna event.

He stressed the importance of linking BVNs to bank accounts to ensure customers can access insured funds easily. “Depositors should ensure their BVNs are properly linked to their bank accounts and identity records, as this greatly facilitates access to their insured deposits,” he said.

Reassuring Nigerians Amid Sector Reforms

The NDIC’s wider deposit protection comes at a crucial time for confidence in the financial sector. The Corporation collaborates closely with the Central Bank of Nigeria (CBN) on bank supervision, resolution planning, and overall regulatory oversight.

Industry stakeholders welcomed the announcement, indicating that better depositor protection is essential for trust and stability in the banking ecosystem.

Representatives at the Kaduna Chamber of Commerce, Industry, Mines and Agriculture event described the NDIC’s expanded role as “a catalyst for financial sector sensitization and confidence building,” among Nigerian savers and investors.

What This Means for Depositors

For most Nigerians with savings in licensed banks and financial institutions, the NDIC’s announcement means their funds are now effectively secure up to the insured limits.

This offers peace of mind amid global financial uncertainties and local economic challenges.

However, depositors with balances above the insured limits should know that recovery of excess amounts depends on asset sales during liquidation processes. These payments are made on a pro-rata basis once they become available.

Overall, the NDIC’s enhanced protection coverage marks a significant step in strengthening the safety net for Nigerian savers. It reinforces the Corporation’s three-decade mission of promoting financial stability.