The Nigeria Deposit Insurance Corporation (NDIC) has announced that almost 99 per cent of bank customers in Nigeria are now fully protected under its updated deposit insurance scheme.
At the 2024 NDIC Editors Forum in Lagos, Dr. Kabir Katata, Director of Research, Policy, and International Relations, said that following the increase of coverage from ₦500,000 to ₦5 million for commercial banks, about 98.98 % of depositors in those banks are fully insured. For microfinance banks, where coverage was raised from ₦200,000 to ₦2 million, about 99.27 % of depositors are now covered.
Katata noted that while the new limits cover the vast majority of depositors, they protect only 26 % of total deposits in commercial banks and 34.43 % in microfinance banks, which is a major increase over prior rates.
He cautioned that raising coverage beyond these caps could stress the NDIC’s resources, especially if multiple banks fail at once.
Speaking through Mustafa Ibrahim, Executive Director of Operations, the NDIC also explained how it handled the liquidation of Heritage Bank after its licence was revoked by the Central Bank of Nigeria. The NDIC used Bank Verification Numbers (BVNs) to locate depositors and began reimbursing insured amounts up to ₦5 million within just four days, without requiring depositors to visit NDIC offices.
Ibrahim urged depositors experiencing delays to ensure their ‘Know Your Customer’ (KYC) records are complete. He said mismatched names, missing BVNs, or account restrictions have delayed some payments.
Beyond insured sums, the NDIC is working to pay uninsured balances by recovering assets from failed banks and distributing liquidation dividends.
In closing, the NDIC reaffirmed its long‑standing commitment to safeguarding depositors and preserving confidence in Nigeria’s banking system, calling on the media to help educate the public about the institution’s role.
