The Nigeria Deposit Insurance Corporation (NDIC) has announced a substantial increase in the maximum deposit insurance coverage levels across various banking sectors.
The effected raise, which takes effect immediately, were revealed today, May 2, 2024, by Mr. Bello Hassan, the NDIC’s MD/CEO, during a press conference.
Key details of the revised insurance coverage:
- Deposit Money Banks (DMBs): The maximum deposit insurance coverage has been elevated from N500,000 to N5,000,000. This change will now fully cover 98.98% of depositors, significantly up from the current 89.20%.
- Microfinance Banks (MFBs): Coverage for MFBs has risen from N200,000 to N2,000,000, aiming to protect 99.27% of depositors, compared to 98.76% under the previous limits.
- Primary Mortgage Banks (PMBs): The coverage has been increased from N500,000 to N2,000,000, ensuring 99.34% of depositors are fully covered, up from 97.98%.
- 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 jumped to N5,000,000 per subscriber.
Mr. Hassan emphasized that the revised coverage is a strategic balance between protecting depositors and ensuring the stability of the financial system.
The changes aim to extend protection to a larger percentage of the population, enhance financial inclusion, and mitigate the potential destabilizing effects of bank runs.
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