By Oluwakemi Kindness
The Nigeria Deposit Insurance Corporation (NDIC) has announced that nearly 99 per cent of bank depositors in the country are now fully protected following a significant increase in deposit insurance coverage aimed at strengthening confidence in the banking sector.
The Managing Director and Chief Executive Officer of the NDIC, Thompson Oludare Sunday, disclosed this during the Q2 2026 Citizens and Stakeholders’ Engagement Session in Abuja.
According to him, the Corporation increased the Maximum Deposit Insurance Coverage (MDIC) in May 2024, marking the first review of coverage limits since 2016.
Under the revised framework, deposit insurance coverage for customers of Deposit Money Banks increased from ₦500,000 to ₦5 million.
Coverage for depositors in Microfinance Banks rose from ₦200,000 to ₦2 million, while customers of Primary Mortgage Banks and Payment Service Banks now enjoy coverage of up to ₦2 million. Mobile Money subscribers are also protected up to ₦5 million.
The NDIC said the reform has pushed full insurance coverage for Deposit Money Bank customers to 98.98 per cent, up from 89.2 per cent before the review. Coverage for customers of Microfinance Banks, Mortgage Banks and Payment Service Banks now exceeds 99 per cent.
Sunday said the enhanced protection would strengthen public confidence in the banking system, promote financial inclusion and safeguard the savings of millions of Nigerians.
He noted that the NDIC currently provides insurance coverage for more than 281 million depositor accounts across 914 licensed financial institutions nationwide, including Deposit Money Banks, Microfinance Banks, Mortgage Banks, Non-Interest Banks and Mobile Money Operators.
The Corporation also highlighted reforms that have significantly reduced the time required to reimburse depositors when a bank fails.
According to the NDIC, the adoption of technology and the use of Bank Verification Number (BVN) matching now enable the Corporation to begin payments within days of a bank’s closure.
The Corporation disclosed that insured depositors of Heritage Bank began receiving payments within four days after the bank’s licence was revoked in June 2024, while payouts to customers of Aso Savings and Union Homes commenced within 72 hours following the revocation of their licences in December 2025.
The NDIC further revealed that it has paid over ₦54.93 billion in insured deposits to Heritage Bank customers and has so far reimbursed more than 698,000 depositors of the defunct bank.
Sunday said the reforms align with the Federal Government’s Renewed Hope Agenda and are expected to deepen trust in the banking system, encourage savings and support economic growth.
He reaffirmed the Corporation’s commitment to protecting depositors, maintaining financial system stability and ensuring that Nigerians continue to have confidence in the safety of their funds in licensed financial institutions.
