The Nigeria Deposit Insurance Corporation (NDIC) has reaffirmed its commitment to safeguarding the nation’s financial system, announcing that its recent upward review of the maximum deposit insurance coverage now protects about 99% of depositors in the Country.
Kabir Katata, Executive Director (Operations), NDIC, stated this on Wednesday at the Corporation’s 2025 Stakeholders’ Town Hall Meeting held in Enugu.
Katata, while speaking on the theme, “Deepening Stakeholder Engagement,” said the policy to expand deposit insurance coverage was deliberately designed to protect small savers, promote financial inclusion and strengthen public confidence in the banking sector.
He explained that the town hall meeting was aimed at engaging stakeholders across various sectors, including academia, market associations and civil society groups.
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“The essence of this town hall meeting is to interact with our stakeholders, tell them what we do and listen to their questions so they can better understand the role NDIC plays in society. We guarantee depositors’ funds and supervise banks to ensure that depositors are protected”, he said.
Katata noted that following the 2024 review of deposit insurance coverage, depositors in Deposit Money Banks (DMBs), Mobile Money Operators (MMOs) and Non-Interest Banks (NIBs) are now insured up to N5 million per depositor.
Similarly, depositors in Microfinance Banks (MFBs), Primary Mortgage Banks (PMBs) and Payment Service Banks (PSBs) now enjoy insurance coverage of up to N2 million per depositor.
“This means that in the event of a bank failure, depositors are promptly paid up to the insured limit,” he said.
He added that depositors with balances exceeding the insured limit would receive the initial insured sum, while the outstanding balance would be paid as liquidation dividends upon realisation of the failed bank’s assets and recovery of debts.
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Highlighting improvements in the payout process, Katata referenced the recent resolution of defunct institutions, including Heritage Bank Limited, Union Homes PLC and Aso Savings and Loans PLC.
He said that the Corporation successfully leveraged the Bank Verification Number (BVN) as a unique identifier to trace depositors’ alternative accounts and transfer insured sums within days of bank closures.
“I urge all depositors to ensure that their BVN is properly linked to their bank accounts and identity records. This greatly facilitates seamless and timely access to insured deposits in the event of bank failure,” he advised.
Katata emphasised that although the NDIC works closely with the Central Bank of Nigeria (CBN) to ensure sound corporate governance and regulatory compliance in banks, financial system stability remains a shared responsibility.
“While the CBN and NDIC continue to strengthen oversight, depositors also have a responsibility to remain vigilant and well-informed,” he said.
