The Nigeria Deposit Insurance Corporation (NDIC) has announced a significant increase in the maximum deposit insurance coverage levels across various banking sectors, effective immediately. The adjustments aim to enhance protection for depositors and ensure the stability of the financial system.
Key details of the revised insurance coverage include:
Deposit Money Banks (DMBs): The maximum coverage has been raised from N500,000 to N5,000,000, fully covering 98.98% of depositors.
Microfinance Banks (MFBs): Coverage for MFBs has increased from N200,000 to N2,000,000, aiming to protect 99.27% of depositors.
Primary Mortgage Banks (PMBs): The coverage has been elevated from N500,000 to N2,000,000, ensuring 99.34% of depositors are fully covered.
Payment Service Banks (PSBs): Coverage has been adjusted from N500,000 to N2,000,000, covering nearly all depositors at 99.99%.
Mobile Money Operators (MMOs): The pass-through deposit insurance for MMO subscribers has increased to N5,000,000 per subscriber.
Mr. Bello Hassan, MD/CEO of NDIC, emphasized that the revised coverage is a strategic balance between protecting depositors and ensuring financial system stability. The changes aim to extend protection to a larger percentage of the population, enhance financial inclusion, and mitigate the potentially destabilizing effects of bank runs.
This development marks a significant step in bolstering confidence in the banking sector and safeguarding the interests of depositors.
