The Nigeria Deposit Insurance Corporation (NDIC) has increased the maximum deposit insurance coverage for customers of deposit money banks from N500,000 to N5 million.
The new coverage adjustment, according to the managing director of NDIC, Bello Hassan, at a press conference on Thursday, said the adjustment is across the various banking sectors.
The change for DMBs will now fully cover 98.98% of depositors, significantly up from the current 89.20%.
According to him, coverage for Microfinance Banks (MFBs) was also increased from N200,000 to N2,000,000, aiming to protect 99.27% of depositors, compared to 98.76% under the previous limits, while Primary Mortgage Banks (PMBs) coverage has been increased from N500,000 to N2,000,000, ensuring 99.34% of depositors are fully covered, up from 97.98%.
Similarly, coverage for Payment Service Banks (PSBs) was adjusted from N500,000 to N2,000,000, covering nearly all depositors at 99.99%, while the pass-through deposit insurance for Mobile Money Operators (MMOs) subscribers was increased to N5,000,000 per subscriber.
Hassan said the revised coverage is a strategic balance between protecting depositors and ensuring the stability of the financial system and extend protection to a larger percentage of the population, enhance financial inclusion, and mitigate the potential destabilising effects of bank runs.
