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The Nigerian Deposit Insurance Corporation (NDIC) has announced a significant enhancement of its deposit insurance coverage for all deposit-taking financial institutions, including Deposit Money Banks (DMBs), Microfinance banks, Primary Mortgage Banks (PMBs), Payment Service Banks (PSBs), and Mobile Money Operators.
According to NDIC Managing Director, Hassan Bello, the maximum deposit insurance coverage for DMBs has been increased from N500,000 to N5 million, providing full coverage for 98.98% of total depositors, up from the current 89.20%. This change represents a substantial expansion of the deposit insurance coverage, with the value of deposits covered rising to 25.37% of the total value of deposits, compared to the current 6.31%.
Similarly, Microfinance banks will see their maximum deposit insurance coverage increase from N200,000 to N2 million, providing full coverage for 99.27% of total depositors and increasing the value of deposits covered to 34.43% of the total value of deposits.
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Primary Mortgage Banks (PMBs) will also benefit from an increase in maximum deposit insurance coverage from N500,000 to N2 million, providing full coverage for 99.34% of total depositors and increasing the value of deposits covered to 21.04% of the total value of deposits.
Payment Service Banks (PSBs) will see their maximum deposit insurance coverage increase from N500,000 to N2 million, providing full coverage for 99.99% of total depositors and increasing the value of deposits covered to 43.10% of the total value deposits.
Lastly, subscribers of Mobile Money Operators will benefit from an increase in maximum Pass-through deposit insurance coverage from N500,000 to N5 million per subscriber per MMO, aligning with the applicable coverage level for depositors of DMBs.
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This significant increase in deposit insurance coverage aims to enhance the protection of depositors and promote financial stability in the Nigerian banking system.