The Nigeria Deposit Insurance Corporation (NDIC) has implemented a significant increase in deposit insurance coverage across various banking sectors in Nigeria. This change aims to provide greater financial security for bank customers in the event of a bank failure.
Effective immediately, deposit insurance coverage for Deposit Money Banks (DMBs) has been raised from N500,000 to N5 million, protecting nearly all depositors (98.98%) compared to the previous 89.20% coverage. Microfinance Banks (MFBs) also benefit from increased coverage, rising from N200,000 to N2 million, safeguarding 99.27% of depositors (up from 98.76%).
Similar improvements extend to Primary Mortgage Banks (PMBs) with coverage limits increasing from N500,000 to N2 million, ensuring 99.34% of depositors are fully covered. Payment Service Banks (PSBs) see their coverage adjusted from N500,000 to N2 million, protecting nearly all depositors at an impressive 99.99%. Finally, Mobile Money Operators (MMOs) benefit from a substantial jump in pass-through deposit insurance for subscribers, reaching N5 million per subscriber.
This substantial increase in deposit insurance coverage by the NDIC offers greater peace of mind for Nigerian bank customers. The improved protections ensure that a wider range of deposits are insured in the event of a bank failure, providing increased financial security for individuals and businesses across the country.