The Nigeria Deposit Insurance Corporation (NDIC) has announced significant increases in deposit insurance coverage for banks and other licensed deposit-taking institutions.
Key Enhancements:
Deposit Money Banks (DMBs): Coverage raised from N500,000 to N5,000,000, providing full protection for 98.98% of depositors.
Microfinance Banks (MFBs): Coverage increased from N200,000 to N2,000,000, offering full coverage for 99.27% of depositors and significantly increasing the value of covered deposits.
Primary Mortgage Banks (PMBs): Maximum coverage raised from N500,000 to N2,000,000, ensuring full coverage for 99.34% of depositors and boosting the value of covered deposits.
Payment Service Banks (PSBs): Coverage increased from N500,000 to N2,000,000, providing near-complete protection (99.99%) for depositors.
Mobile Money Operators (MMOs): Maximum Pass-through deposit insurance coverage raised to N5,000,000 per subscriber per MMO, aligning it with the coverage level for DMBs.
These increased coverage levels provide greater protection to depositors in the event of a bank failure or bankruptcy. They aim to:
* Strengthen the banking system
* Encourage financial inclusion
* Provide peace of mind to depositors
The enhanced coverage takes effect immediately, offering increased confidence in the safety and security of deposits with licensed financial institutions in Nigeria. CONTINUE READING
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