The Nigeria Deposit Insurance Corporation (NDIC) has assured Nigerians that about 99 percent of depositors in the country’s banking system are fully protected under its enhanced deposit insurance scheme. The announcement was made by the Managing Director and Chief Executive, Mr. Thompson Sunday, during the NDIC Special Day at the 47th Kaduna International Trade Fair on Wednesday.
The trade fair, organised by the Kaduna Chamber of Commerce, Industry, Mines and Agriculture, carries the theme, “From Reforms to Results: Economic Transformation through Sustained Local Content Development,” reflecting the focus on leveraging institutional reforms for tangible economic impact. Sunday, represented by the NDIC Assistant Director of Communication and Public Affairs, Regina Dinlung, said the theme aligns with ongoing reforms in Nigeria’s financial sector aimed at safeguarding public funds and enhancing financial stability.
Highlighting the corporation’s three-decade-long mandate, Sunday explained that the NDIC has played a critical role in protecting depositors, particularly the most vulnerable, against the negative effects of bank failures. “Our mandate encompasses deposit guarantee, supervision of insured institutions, distress resolution, and the orderly liquidation of failed banks,” he said.
Sunday noted that the NDIC works closely with the Central Bank of Nigeria (CBN) to strengthen risk-based supervision, enhance resolution planning, and foster inter-agency collaboration to protect the banking system. “Our tagline, ‘Protecting Your Bank Deposits,’ reflects our enduring commitment to financial inclusion and stability, reassuring Nigerians that their savings are safe,” he added.
In 2024, the NDIC increased the maximum deposit insurance coverage to N5 million per depositor per bank for Deposit Money Banks, Mobile Money Operators, and Non-Interest Banks. Depositors of Payment Service Banks, Microfinance Banks, and Primary Mortgage Banks are insured up to N2 million per depositor per bank. “This expanded coverage protects about 99 percent of depositors, underscoring our commitment to safeguarding the savings of Nigerians,” Sunday said.
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He emphasised that, in the event of a bank failure, insured depositors are paid promptly up to the insured limit. Depositors with balances exceeding the coverage threshold receive liquidation dividends as the assets of the failed bank are realised. The NDIC boss cited recent closures of Heritage Bank Limited, Union Homes Plc, and Aso Savings and Loans Plc as examples of improved payout efficiency. Leveraging the Bank Verification Number (BVN) system, the NDIC was able to trace depositors’ accounts and ensure payments were credited within days.
Sunday urged all depositors to ensure their BVNs are properly linked to their bank accounts to facilitate seamless and timely access to insured funds. “Properly linking your BVN to your bank account and identity records greatly facilitates access to insured deposits,” he said, reiterating the NDIC’s commitment to public confidence and Nigeria’s long-term economic resilience.
Alhaji Farouk Suleiman, President of the Kaduna Chamber of Commerce, Industry, Mines and Agriculture, praised the NDIC for its role in maintaining depositor confidence. “The corporation’s work often operates quietly behind the scenes, yet its impact is profoundly felt across the economy. Its participation in the trade fair underscores its dedication not only to regulation but also to public enlightenment and stakeholder engagement,” he said.
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With this assurance, the NDIC is reaffirming its central role in stabilising Nigeria’s financial system, enhancing depositor confidence, and promoting economic growth through robust oversight and efficient payout mechanisms. The initiative reflects the ongoing commitment of Nigeria’s financial regulators to create a safer, more transparent banking environment that safeguards the interests of all citizens.
