The Nigeria Deposit Insurance Corporation (NDIC) has significantly increased deposit insurance coverage, providing greater protection for your hard-earned money.
Deposit insurance guarantees that depositors will get their money back up to a certain limit if their bank fails. Previously, this limit was N500,000, but it has now been raised to N5 million for depositors in commercial banks (Deposit Money Banks). This means that nearly all depositors (98.98%) are now fully covered.
The increase extends to other financial institutions as well. Microfinance banks now have a coverage limit of N2 million, while Primary Mortgage Banks and Payment Service Banks have a limit of N2 million each. Mobile Money Operators’ subscribers are also covered for up to N5 million per subscriber.
This move aims to boost public confidence in the banking system and encourage financial inclusion. The NDIC emphasized the importance of using only licensed deposit-taking institutions, as they are the ones covered by this insurance scheme.
