The Nigeria Deposit Insurance Corporation (NDIC) has raised deposit insurance coverage for all licensed deposit-taking financial institutions, including Deposit Money Banks (DMBs), Microfinance Banks (MFBs), Primary Mortgage Banks (PMBs), Payment Service Banks (PSBs), and Mobile Money Operators (MMOs). The announcement was made by NDIC Managing Director/Chief Executive Bello Hassan in Abuja.
The new coverage levels offer increased protection for depositors in the event of a bank failure. For DMBs, coverage has been raised from N500,000 to N5,000,000, providing full coverage for 98.98 percent of depositors compared to the previous 89.20 percent. MFBs now offer full coverage for 99.27 percent of depositors (up from 98.76 percent) with an increase from N200,000 to N2,000,000 in coverage.
PMBs now provide full coverage for 99.34 percent of depositors (up from 97.98 percent) with the maximum coverage raised from N500,000 to N2,000,000. PSBs, which previously offered coverage up to N500,000, now provide coverage up to N2,000,000, ensuring near-complete protection for depositors. MMOs have also seen an increase in coverage to N5,000,000 per subscriber per MMO.
The increased coverage levels are effective immediately, offering Nigerians greater peace of mind when saving their money with licensed financial institutions. The move is expected to strengthen the banking system and encourage further financial inclusion in the country.
