The Nigeria Deposit Insurance Corporation (NDIC), has disclosed the enhanced deposit insurance coverage of ₦5 million and ₦2 million for bank customers as part of efforts to strengthen depositor confidence and consumer protection in the financial system.
The disclosure was made on Monday in Kano during an NDIC Stakeholders Town Hall Meeting themed “Strengthening Depositor Confidence: NDIC’s Role in Financial System Stability and Consumer Protection.” The forum brought together key stakeholders to deepen public understanding of the Deposit Insurance System (DIS).
At the event, the Executive Director, Corporate Services, NDIC, Mrs Emily C. Osuji, explained that under the revised coverage approved in 2024, depositors of Deposit Money Banks, Mobile Money Operators, and Non-Interest Banks are now insured up to ₦5 million.
She added that customers of Microfinance Banks, Primary Mortgage Banks, and Payment Service Banks are covered up to ₦2 million.
According to her, the enhanced insurance limits protect about 99 per cent of depositors in the country, particularly small savers, while also promoting financial inclusion and public confidence in the banking sector.
She said the town hall meeting was part of NDIC’s renewed drive to engage stakeholders, correct widespread misconceptions about deposit insurance, and clarify what happens to customers’ funds when a bank’s licence is revoked.
Osuji noted that many depositors remain unaware of the scope of NDIC coverage, the reimbursement process, and the steps to take when a bank fails.
She emphasised that the forum provided an opportunity to explain these issues in practical terms and empower depositors with accurate information.
The NDIC executive reaffirmed the Corporation’s mandate, which includes deposit guarantee, bank supervision, distress resolution, and liquidation of failed banks, assuring Nigerians of NDIC’s commitment to protecting depositors’ savings and maintaining financial system stability.
She also highlighted improvements in NDIC’s payout processes, citing the prompt settlement of insured depositors of recently defunct banks such as Heritage Bank Limited, Union Homes Plc, and Aso Savings and Loans Plc, facilitated through the use of Bank Verification Numbers (BVN).
Speaking, the Controller of NDIC Kano Zonal Office, Mr Ahmad Umar, described depositor confidence as critical to Kano’s role as a major commercial hub.
He said the zonal office plays a key role in bank supervision, failure resolution, and public awareness at the grassroots.
The Head of Communication and Public Affairs Department, NDIC, Mrs Hawwau Gambo, explained that the town hall series was introduced in response to recent developments in the banking sector, including licence revocations and recapitalisation efforts, which have heightened public interest and concerns.