The Nigeria Deposit Insurance Corporation has substantially raised the maximum deposit coverage provided for customers of various banking institutions in the country. NDIC managing director Bello Hassan announced the increases at a press briefing held in Abuja on May 3rd.
For deposits held at Deposit Money Banks (DMBs), the ceiling has been lifted from N500,000 to N5,000,000. This revised limit will cover 98.98% of DMB depositors, a notable uptick from the current 89.2% coverage level. In terms of deposit value, the new threshold will protect over 25% compared to just 6.31% previously.
Microfinance Bank (MFB) customers will now enjoy coverage up to N2,000,000, a sizable jump from the past limit of N200,000. Around 99.27% of MFB depositors will be fully insured under this framework versus 98.76% currently. Moreover, the revised level lifts covered deposit values from 14.38% to 34.43%.
Primary Mortgage Banks (PMBs) have their ceiling augmented to N2,000,000 from N500,000 previously. The new insurance guard will safeguard 99.34% of PMB depositors versus 97.98% in the past system. Deposit value coverage rises as well from 10.77% to an improved 21.04%.
These extensive revisions indicate NDIC’s strong commitment to bolstering consumer confidence through widening the financial safety net across the nation’s diverse banking sectors. Time will tell what resultant impacts on financial inclusion and economic resilience emerge from these buffers.
