In a move aimed at bolstering financial security and providing greater protection for depositors, the Nigeria Deposit Insurance Corporation (NDIC) has announced significant enhancements to the maximum deposit insurance coverage for Deposit Money Banks (DMBs), Microfinance Banks (MFBs), and Primary Mortgage Banks (PMBs).
During a press briefing in Abuja on Thursday, Mr. Bello Hassan, the Managing Director/Chief Executive of the NDIC, unveiled the new measures which include raising the maximum deposit insurance protection for DMBs from N500,000 to N5,000,000. This substantial increase will now extend comprehensive coverage to 98.98% of all depositors, representing a significant rise from the current coverage of 89.20%.
Similarly, the maximum deposit insurance coverage for MFBs has been raised from N200,000 to N2,000,000, ensuring full protection for 99.27% of all depositors. This enhancement marks a notable increase from the current coverage of 98.76% and will elevate the value of deposits covered by insurance to 34.43% of the total deposit value, up from the current rate of 14.38%.
Furthermore, the NDIC has increased the maximum deposit insurance coverage for PMBs from N500,000 to N2,000,000. This adjustment will provide nearly full coverage for 99.34% of all depositors, reflecting an increase from the current coverage of 97.98%. Additionally, the coverage of deposits under the insurance scheme will rise to 21.04% of the total deposit value, a significant improvement from the current rate of 10.77%.
These enhancements underscore the NDIC’s commitment to safeguarding depositors’ funds and ensuring the stability of the banking sector. The increased coverage levels offer greater reassurance to depositors across the country, promoting confidence and trust in the financial system.
The move comes as part of the NDIC’s ongoing efforts to strengthen depositor protection mechanisms and align with international best practices in financial regulation. By expanding deposit insurance coverage, the NDIC aims to mitigate risks, enhance financial resilience, and foster a more secure and resilient banking environment in Nigeria.
