By Matthew Denis
The Nigeria Deposit Insurance Corporation (NDIC) has achieved a comprehensive level of protection across the nation’s banking system, with deposit insurance covering over 98% of total depositors in all licensed banking categories.
Managing Director and Chief Executive Officer of the NDIC, Mr. Thompson Oludare Sunday, disclosed this information during the corporation’s special day event at the Abuja International Trade Fair (ACCI) on Thursday.
Represented by Director Mrs. Bimpe Akande, the MD stated that the NDIC’s recent increase in the maximum deposit insurance coverage has broadened protection significantly.
The enhanced coverage ensures the following protection rates for total depositors namely, 98.98% in Deposit Money Banks (DMBs), 99.27% in Microfinance Banks (MFBs), 99.34% in Primary Mortgage Banks (PMBs) and
99.99% in Payment Service Banks (PSBs).
The current coverage limits are five million naira for depositors in DMBs, Mobile Money Operators, and Non-Interest Banks, and two million naira for depositors in PSBs, MFBs, and PMBs.
Sunday stressed that this commitment fulfills the NDIC’s core mandate, which is “Protecting your bank deposits,” and promotes financial inclusion and stability by assuring Nigerians of the security of their savings.
The MD explained the process for bank failures, noting that depositors with account balances exceeding the insured limit first receive the maximum insured amount. Their remaining balances are then paid through liquidation dividends.
“Liquidation dividends refer to payouts made to depositors and creditors from the proceeds generated from the sale of a failed bank’s assets and recovered debts during the liquidation process,” he clarified. These funds are paid out on a pro-rata basis.
He cited the revocation of Heritage Bank’s license on June 3, 2024, as a clear example of the NDIC’s effectiveness.
The corporation promptly began reimbursing insured deposits using the Bank Verification Number (BVN) to locate alternate accounts. Depositors with sums above five million naira initially received the five million naira insured amount, with the first tranche of liquidation dividends commencing on April 25, 2025.
“Payments continue, as the corporation continues to realise the sale of assets and recover debts, demonstrating the NDIC’s effectiveness in ensuring comprehensive depositor protection and financial stability,” he said.
The NDIC Boss used the platform to caution Nigerians against falling victim to illicit financial schemes.
“I would like to emphasize the importance for Nigerians to remain vigilant against Ponzi schemes and other fraudulent investment platforms,” he advised. “Always ensure your funds are placed only in Central Bank of Nigeria licensed banks, all of which are covered by deposit insurance provided by the NDIC.”
Earlier, the President of ACCI, Dr. Chief Emeka Obegolu, represented by the DG of ACCI, Agabadu Jidani, commended the NDIC for its role in ensuring stability.
He praised the corporation’s initiatives in advancing financial inclusion, particularly its digital innovations and strong consumer protection framework, noting that “By extending deposit insurance coverage… NDIC has shown responsiveness to the evolving dynamics of Nigeria’s financial landscape.”
Obegolu concluded that the NDIC is a “strategic partner in advocacy and economic development,” vital for advancing Nigeria’s competitiveness and reducing business risks.