Connect with us

Business

NDIC Increases Insurance Coverage Deposit for Banks to N5,000,000

Published

3 years ago

on

The Nigeria Deposit Insurance Corporation (NDIC) announced recently that it has increased the maximum deposit insurance coverage levels across various banks. According to NDIC increase takes effect immediately. The new insurance coverage adjustments were revealed during a press conference held by the NDIC’s MD/CEO, Mr. Bello Hassan, on May 2, 2024.

In Mr Hassan press conference these below are the adjustment:

  • Deposit Money Banks (DMBs): The maximum deposit insurance coverage have been raised from N500,000 to N5,000,000. This change will now fully cover 98.98% of depositors, significantly up from the current 89.20%.
  • Microfinance Banks (MFBs): Coverage for MFBs has risen from N200,000 to N2,000,000, aiming to protect 99.27% of depositors, compared to 98.76% under the previous limits.
  • Primary Mortgage Banks (PMBs): The coverage has been increased from N500,000 to N2,000,000, ensuring 99.34% of depositors are fully covered, up from 97.98%.
  • Payment Service Banks (PSBs): Coverage has been adjusted from N500,000 to N2,000,000, covering nearly all depositors at 99.99%.
  • Mobile Money Operators (MMOs): The pass-through deposit insurance for MMO subscribers has jumped to N5,000,000 per subscriber.

Below is Mr Hassan’s Address

“Based on these considerations, and in line with our commitment to enhancing depositors’ protection, public confidence, financial inclusion, and stability of the financial system, I am pleased to announce that the NDIC’s Interim Management Committee (IMC), during its 18th meeting held on April 24th and 25th, approved an increase in the maximum deposit insurance coverage levels for all licensed deposit-taking financial institutions with immediate effect.

The adjustments are as follows:

  1. Deposit Money Banks (DMBs):The maximum deposit insurance coverage has been increased from N500,000 to N5,000,000, providing full coverage to 98.98% of total depositors compared to the current coverage of 89.20%. In terms of the value of deposits covered, the revised coverage would increase to 25.37% compared to the current 6.31% of the total value of deposits.
  2. Microfinance Banks (MFBs):The maximum deposit insurance coverage has been increased from N200,000 to N2,000,000, providing full coverage to 99.27% of total depositors compared to the current level of 98.76%. This would increase the value of deposits covered by deposit insurance to 34.43% compared to the current 14.38% of the total value of deposits.
  3. Primary Mortgage Banks (PMBs):The maximum deposit insurance coverage has been increased from N500,000 to N2,000,000, providing full coverage to 99.34% of total depositors compared to the current 97.98%. This would increase the value of deposits covered by deposit insurance to 21.04% compared to the current 10.77% of the total value of deposits.
  4. Payment Service Banks (PSBs): The maximum deposit insurance coverage has been increased from N500,000 to N2,000,000, providing full coverage to 99.99% of the total number of depositors. This would increase the value of deposits covered by deposit insurance to 43.10% of the total value of deposits from the current coverage of 40.60%.
  5. Subscribers of Mobile Money Operators: The maximum pass-through deposit insurance coverage has been increased from N500,000 to N5,000,000 per subscriber per MMO as the applicable coverage level for depositors of DMBs.”

Mr. Hassan outlined rationale behind the adjustments in insurance coverage. Initially set at N50,000 in 1989 to cover 85% of depositors, the coverage was progressively increased to N200,000 in 2006, and later to N500,000 in 2011 for Deposit Money Banks (DMBs), with similar adjustments made for other financial institutions over the years. The latest study in 2023 underscored the need for a further increase due to high percentages of depositors being fully insured but still a considerable value of deposits remaining uncovered, which posed risks like potential bank runs.

He noted that the revised coverage is a strategic balance between protecting depositors and ensuring the stability of the financial system. The changes aim to extend protection to a larger percentage of the population, enhance financial inclusion, and mitigate the potentially destabilizing effects of bank runs.

 

Related Topics:
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

CBN Restores BDC Access to FX Market, Caps Weekly Purchases at $150,000

Published

9 months ago

on

February 11, 2026

By

By Huldah Shado

The Central Bank of Nigeria (CBN), has approved the participation of licensed Bureau De Change (BDC), operators in the Nigerian Foreign Exchange Market (NFEM), allowing each BDC to purchase up to $150,000 weekly.

The approval was contained in a circular dated February 10, 2026, signed by the Director of the Trade and Exchange Department, Dr. Musa Nakorji, and addressed to authorised dealer banks and the general public.

The CBN said the move is aimed at improving foreign exchange liquidity in the retail segment of the market and meeting the legitimate needs of end users, amid a widening gap between the official and parallel market exchange rates.

Under the new arrangement, licensed BDCs can access foreign exchange from the NFEM through any authorised dealer bank of their choice at the prevailing exchange rate.

The apex bank directed banks to carry out full Know-Your-Customer (KYC), and due diligence checks on BDC clients before selling foreign exchange to them.

It also imposed reporting and transparency requirements, mandating BDCs to submit returns electronically to the CBN.

In addition, the bank prohibited third-party transactions and limited cash settlement to a maximum of 25 per cent of each transaction.

Continue Reading

Abuja Reports

Ultraviolet MFB MD Visits Equity Circle, Eyes Strategic Partnership

Published

9 months ago

on

January 30, 2026

By

By Samson Adeyanju 

The Managing Director and Chief Executive Officer of Ultraviolet Microfinance Bank, Bayonle Omoyele, has paid a working visit to Equity Circle, one of Abuja’s fast-growing real estate companies, as part of efforts to strengthen strategic partnerships within Nigeria’s real estate sector.

During the visit, Equity Circle’s Co-Founder and Chief Marketing Officer, Fabian George, conducted Omoyele on a tour of the company’s facilities and outlined its growth trajectory.

He disclosed that the firm recorded significant milestones over the past four years, culminating in an ₦8 billion revenue in the 2025 financial year.

Discussions between both parties focused on establishing a strategic credit relationship, with proposed areas of collaboration including invoice discounting, structured credit solutions, and cash-flow management support to help Equity Circle sustain and scale its operations.

Addressing Equity Circle staff during an interactive session, Omoyele emphasised the importance of strong marketing fundamentals, highlighting the 4Ps of marketing-Product, Price, Place, and Promotion, as key drivers of long-term competitiveness and brand leadership.

He also urged the team to adopt a long-term growth mindset, remain focused, and ensure that every unit contributes meaningfully to the organisation’s strategic goals, noting that disciplined execution is critical in Nigeria’s evolving real estate market.

The visit underscores Ultraviolet Microfinance Bank’s commitment to supporting high-growth enterprises through tailored financial solutions and partnerships that promote sustainable economic development.

Continue Reading

Business

Moniepoint Strengthens Africa’s Tech Talent Pipeline with DreamDevs Cohort 2

Published

10 months ago

on

January 19, 2026

By

By Omoniyi David

Moniepoint Inc has reaffirmed its commitment to building Africa’s technology talent pipeline, announcing the opening of applications for the second cohort of its flagship DreamDevs initiative.

Co-Founder and CTO Felix Ike described DreamDevs as a programme that equips recent graduates with industry-ready skills and hands-on experience to bridge the continent’s tech talent gap.

“The success of our first cohort validated that Africa’s young tech talent can compete globally. This year, we aim to convert half of our participants into full-time employees,” Ike said, adding that the initiative creates sustainable career pathways that drive Africa’s digital economy.

DreamDevs complements Moniepoint’s other talent development programmes, including HatchDev, in collaboration with NITHub, University of Lagos, which trains about 500 specialised developers annually, and the Women-in-Tech programme, now in its fifth year.

The initiative also aligns with the Federal Government’s 3 Million Technical Talent (3MTT), programme, with Moniepoint serving as a key sponsor, offering graduates a specialised pathway from training to employment.

DreamDevs underscores Moniepoint’s broader mission to leverage technology to empower Africa’s youth and advance the continent’s digital economy.

Continue Reading

Trending