The Nigeria Deposit Insurance Corporation (NDIC) has announced an increase in deposit insurance coverage for all licensed deposit-taking financial institutions.
The Managing Director/Chief Executive of NDIC, Bello Hassan, announced this during a briefing in Abuja.
He said the increment in deposit insurance coverage applies to various categories of financial institutions, including Deposit Money Banks (DMBs), Microfinance Banks (MFBs), Primary Mortgage Banks (PMBs), Payment Service Banks (PSBs), and Mobile Money Operators (MMOs).
Hassan emphasized that the increase in coverage aims to better protect depositors in the unlikely event of a bank failure. Key highlights of the increased deposit insurance coverage include:
- Deposit Money Banks (DMBs): Coverage has increased from N500,000 to N5,000,000, providing full coverage for 98.98% of depositors.
- Microfinance Banks (MFBs): Coverage has risen from N200,000 to N2,000,000, offering full coverage for 99.27% of depositors.
- Primary Mortgage Banks (PMBs): Maximum coverage has been raised from N500,000 to N2,000,000, ensuring complete coverage for 99.34% of depositors.
- Payment Service Banks (PSBs): Coverage has been increased from N500,000 to N2,000,000, providing near-complete protection for depositors.
- Mobile Money Operators (MMOs): The maximum Pass-through deposit insurance coverage has been raised to N5,000,000 per subscriber per MMO, aligning it with the coverage level for DMBs.
Hassan further stated that the increased coverage levels are effective immediately.
