The Nigeria Deposit Insurance Corporation (NDIC) has increased the maximum deposit insurance coverage levels across various banking sectors.
For Deposit Money Banks (DMBs), the maximum deposit insurance coverage has been increased from N500,000 to N5,000,000. This change will now fully cover 98.98% of depositors, significantly up from the current 89.20%.
For Microfinance Banks (MFBs), insurance coverage for MFBs increased from N200,000 to N2,000,000 with protection limit extending to 99.27% of depositors, compared to 98.76% under the previous limits.
Others notable increase was for Primary Mortgage Banks (PMBs) whose coverage has been increased from N500,000 to N2,000,000, ensuring 99.34% of depositors are fully covered, up from 97.98% and Payment Service Banks (PSBs) whose coverage has been adjusted from N500,000 to N2,000,000, covering nearly all depositors at 99.99%.
Lastly, for Mobile Money Operators (MMOs), the pass-through deposit insurance for MMO subscribers has jumped to N5,000,000 per subscriber.
This development was announced by NDIC’s MD/CEO, Mr. Bello Hassan at a Press Conference on May 2, 2024, the changes will be effective immediately.
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.
Earlier, in its recent assessment of Nigeria’s financial landscape, the International Monetary Fund (IMF) has called for Nigeria to methodically raise the deposit insurance levels managed by the NDIC.
By: Babajide Okeowo
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