The Nigeria Deposit Insurance Corporation (NDIC) has announced that nearly all depositors in Nigeria’s commercial banks are now fully protected under its expanded deposit insurance scheme. The Managing Director of the Corporation, Mr. Thompson Sunday, disclosed that about 98.98 percent of depositors in commercial banks are covered, marking a significant milestone in efforts to strengthen public confidence in the country’s financial system.
Speaking during the NDIC’s Special Day at the 20th Abuja International Trade Fair, Mr. Sunday explained that the expanded coverage was achieved following the recent upward review of maximum insured deposit limits across various categories of financial institutions. Under the new arrangement, depositors in Deposit Money Banks, Non-Interest Banks, and Mobile Money Operators are covered up to ₦5 million, while those in Microfinance Banks, Primary Mortgage Banks, and Payment Service Banks now enjoy coverage of up to ₦2 million.

The NDIC boss noted that the new insurance limits were introduced in line with the corporation’s mandate to protect depositors and promote stability in the financial system. He stated that the corporation had reviewed the coverage after conducting a thorough assessment of deposit trends, inflationary pressures, and changes in the structure of the Nigerian banking sector. According to him, the new coverage ensures that over 98 percent of bank customers in Nigeria can recover their full deposits in the event of bank failure.
Mr. Sunday added that the NDIC, working closely with the Central Bank of Nigeria (CBN), remains committed to enhancing the safety and soundness of the financial system. He emphasized that the corporation’s intervention mechanisms have helped sustain public confidence during challenging economic periods, preventing widespread panic and safeguarding the interests of small depositors. He urged Nigerians to always ensure that the financial institutions where they deposit their funds are licensed by the CBN, as only such institutions are covered by the NDIC’s insurance scheme.
In addition to deposit insurance, Mr. Sunday explained that the NDIC continues to provide liquidation dividends to depositors whose funds exceed the insured limits whenever a financial institution is closed. He said that such payments are made from the proceeds recovered through the sale of the failed bank’s assets and repayment of outstanding debts. This, he noted, ensures that even large depositors are able to recover a substantial portion of their funds over time.
The NDIC chief used the opportunity to warn members of the public against unlicensed investment and Ponzi schemes, noting that such schemes are outside the regulatory framework and therefore not protected by any deposit insurance coverage. He advised Nigerians to be cautious about financial platforms that promise unusually high returns, as many of them are fraudulent and often collapse suddenly, leading to loss of savings.
He reaffirmed the NDIC’s ongoing efforts to educate the public on financial literacy and deposit protection, noting that awareness remains critical to maintaining stability in the banking system. According to him, the corporation regularly collaborates with key stakeholders, including the CBN, commercial banks, and law enforcement agencies, to ensure effective supervision and resolution of distressed financial institutions.
The new deposit coverage framework, he said, reflects the NDIC’s proactive approach to evolving economic realities and its readiness to safeguard depositors’ funds in the face of uncertainty. He stressed that the corporation will continue to adapt its policies and tools to meet emerging risks in the financial system, including those posed by digital banking and mobile money operations.
Financial analysts have lauded the development as a step toward building stronger public trust in the banking system. They noted that by assuring depositors that their funds are protected, the NDIC is indirectly supporting financial inclusion and encouraging savings, which are vital for economic growth. The expanded insurance coverage also reduces the likelihood of bank runs during periods of economic stress, as depositors feel more secure about their funds.
The NDIC’s latest announcement underscores its commitment to maintaining financial stability and protecting the interests of depositors. With almost all commercial bank deposits now insured, the corporation has further strengthened its role as a key pillar of Nigeria’s financial safety net, ensuring that the confidence of ordinary Nigerians in the banking system remains intact even amid economic challenges.
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