NDIC Increases Deposit Insurance Coverage for Banks, Financial Institutions

NDIC Increases Deposit Insurance Coverage for Banks, Financial Institutions

The Nigeria Deposit Insurance Corporation (NDIC) has increased deposit insurance coverage for all licensed deposit-taking financial institutions.

NDIC Managing Director/Chief Executive Bello Hassan announced this at briefing in Abuja.

He further explained that the increment applies to Deposit Money Banks (DMBs), Microfinance Banks (MFBs), Primary Mortgage Banks (PMBs), Payment Service Banks (PSBs) and Mobile Money Operators (MMOs).

Key increases in Deposit Insurance Coverage: Deposit Money Banks (DMBs) coverage has jumped from N500,000 to N5,000,000, providing full coverage for 98.98 percent of depositors compared to the previous 89.20 percent.

Microfinance Banks (MFBs) coverage has risen from N200,000 to N2,000,000, offering full coverage for 99.27 percent of depositors (up from 98.76 percent) and significantly increasing the value of covered deposits (from 14.38 percent to 34.43 percent of total deposits).

For Primary Mortgage Banks (PMBs), the maximum coverage has been raised from N500,000 to N2,000,000, ensuring full coverage for 99.34 percent of depositors and boosting the value of covered deposits from 10.77 percent to 21.04 percent of total deposits.