, NDIC Announces Significant Increase in Deposit Insurance Coverage from 500K- 5M -

NDIC Announces Significant Increase in Deposit Insurance Coverage from 500K- 5M

The Nigeria Deposit Insurance Corporation (NDIC) has implemented a major boost for depositors’ confidence, raising the maximum deposit insurance coverage across various financial institutions. This move, effective immediately, aims to provide greater financial security for Nigerians.

According to NDIC’s Managing Director, Bello Hassan, the maximum deposit insurance coverage for Deposit Money Banks (DMBs) has been significantly increased from N500,000 to N5,000,000. This translates to a substantial benefit for depositors.

Deposit Money Banks (DMBs): The revised coverage offers full protection for a staggering 98.98% of all depositors compared to the previous 89.20%. This translates to a more comprehensive safety net, especially for smaller depositors.

The maximum coverage for PMBs has also risen from N500,000 to N2,000,000, offering complete security for virtually all depositors (99.99%). The value of deposits insured also increases to 43.10% of the total deposit value, up from the current 40.60%.

Depositors utilizing mobile money services also benefit from a significant hike. The maximum pass-through deposit insurance coverage per subscriber has jumped from N500,000 to N5,000,000.

The increased coverage signifies a broader range of deposits being fully insured, offering peace of mind to a wider segment of the population. This move by the NDIC is particularly impactful considering the current economic climate.

Hassan elaborated on the broader implications of the increased coverage. He explained that this initiative not only protects depositors but also strengthens public confidence in the Nigerian banking system. This, in turn, can lead to increased deposit mobilization, which can fuel economic growth by providing banks with more resources for lending to businesses and individuals.

The NDIC’s decision demonstrates its commitment to safeguarding depositors’ funds and promoting financial stability within the Nigerian financial system. This move is likely to be welcomed by both depositors and the banking sector as a whole.

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