OPay insures deposits up to N5m, reassures customers of enhanced financial security
By Esther Agbo
OPay, a prominent Nigerian fintech company has confirmed that its customers’ deposits are now insured up to N5 million, in line with the Nigeria Deposit Insurance Corporation (NDIC) industry standard.
In a statement released on Sunday, OPay highlighted this commitment to financial security, noting that it aligns their practices with those of other commercial banks in Nigeria.
This development follows the NDIC’s May announcement, which increased the maximum deposit insurance coverage from N500,000 to N5 million per mobile money operator subscriber. This adjustment significantly enhances the protection for OPay users’ funds.
The Managing Director/CEO NDIC, Bello Hassan, at the press conference announcing the increase, stated, “The revised coverage is a strategic balance between protecting depositors and ensuring the stability of the financial system.
These changes aim to extend protection to a larger percentage of the population, enhance financial inclusion, and mitigate the potentially destabilising effects of bank runs.”
Additionally, Hassan said that the enhanced coverage is supported by the NDIC’s solid financial backing, premium collections, and robust supervisory and resolution frameworks as stipulated in the NDIC Act No. 33 of 2023.
He emphasized that this infrastructure is crucial for maintaining depositor confidence and financial system stability.
According to OPay, “This strategic enhancement not only aims to protect depositors but also encourages market discipline among banks and MMOs. By increasing the insured amount, the NDIC seeks to prevent unnecessary risk-taking by financial institutions, thereby reducing the potential for destabilising bank runs.
“OPay’s alignment with the NDIC’s revised insurance coverage standards underscores its dedication to safeguarding user funds and promoting financial stability. With this new level of insurance, OPay users can now have the same confidence in the security of their deposits as customers of other commercial banks.
This move contributes significantly to a more inclusive and resilient financial ecosystem in Nigeria.”
Founded in 2018, OPay aims to make financial services more inclusive through technology, offering various payment services such as money transfers, bill payments, airtime and data purchases, card services, and merchant payments.
Licensed by the Central Bank of Nigeria and insured by the NDIC, OPay now provides the same insurance coverage as other commercial banks.
