The Nigeria Deposit Insurance Corporation (NDIC) has announced a substantial increase in the maximum deposit insurance coverage levels across various banking sectors.
Effective immediately, the new coverage adjustments were revealed during a press conference held by the NDIC’s MD/CEO, Mr. Bello Hassan, on May 2, 2024.
Key Details of the Revised Insurance Coverage
1. 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%.
2. 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.
3. 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%.
4. Payment Service Banks (PSBs): Coverage has been adjusted from N500,000 to N2,000,000, covering nearly all depositors at 99.99%.
5. 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.
