The Nigeria Deposit Insurance Corporation (NDIC) has announced a significant increase in maximum deposit insurance coverage levels in certain banking sectors.
The revised coverage revisions are effective immediately and were announced during a press conference conducted on May 2, 2024, by the NDIC’s MD/CEO, Mr. Bello Hassan.
Key Features of the Revised Insurance Coverage includes:
- Deposit Money Banks (DMB): The maximum deposit insurance coverage has increased from N500,000 to N5,000,000. This modification now covers 98.98% of depositors, a significant increase from the current 89.20%.
- Microfinance Banks (MFBs): Coverage for MFBs has increased from N200,000 to N2,000,000, with the goal of protecting 99.27% of depositors, up from 98.76% previously.
- Primary Mortgage Banks (PMBs): The coverage has been enhanced from N500,000 to N2,000,000, guaranteeing that 99.34% of depositors are completely insured, up from 97.98%.
- Payment Service Banks (PSBs): Coverage has been increased from N500,000 to N2,000,000, which covers practically all depositors at 99.99%.
- Mobile Money Operators (MMOs): The pass-through deposit insurance for MMO users has increased to N5 million per subscriber.
Mr. Hassan stressed that the expanded coverage strikes a strategic balance between protecting depositors and ensuring the stability of the financial sector.
The changes aim to offer protection to a broader percentage of the population, improve financial inclusion, and limit the potential.
