NDIC says 281 million depositors insured against bank failure

Nigeria's banking system now insures more than 281 million depositors against failure, a significant expansion of coverage and accelerated reimbursement following recent reforms. Thompson Sunday, Managing Director and Chief Executive Officer of the Nigeria Deposit Insurance Corporation (NDIC), announced the figures during a stakeholders' engagement session in Abuja.

The NDIC currently provides deposit insurance for 914 licensed financial institutions, including Deposit Money Banks, Non-Interest Banks, microfinance banks, Primary Mortgage Banks, and Mobile Money Operators. Following an upward review of deposit insurance limits in May 2024, over 98% of depositors are now fully insured for their entire balances.

Under the revised framework, insurance coverage for depositors in Deposit Money Banks increased from N500,000 to N5 million. Customers of Microfinance Banks, Primary Mortgage Banks, and Payment Service Banks now have up to N2 million in coverage, while mobile money subscribers are insured up to N5 million. This reform has boosted full insurance coverage for Deposit Money Bank customers from 89.2% to 98.98%, with similar increases for other bank types.

Sunday also highlighted improvements in the speed of depositor reimbursements after bank failures. Technology, specifically the Bank Verification Number, has reduced payment timelines from years to days. For instance, the NDIC has paid over N54.93 billion in insured deposits to 698,040 Heritage Bank customers. In 2025 alone, the corporation disbursed N4.06 billion to insured depositors and N33.59 billion to uninsured depositors of failed banks.

These reforms are further strengthened by the NDIC Act 2023, which replaced the 2006 Act. The new law enhances the corporation's powers to resolve failing banks, recover assets, and protect depositors. It also grants depositors priority over creditors and shareholders during bank liquidation and bolsters the Deposit Insurance Fund.

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914 licenced banks covered, every Deposit Money Banks, Non-Interest Banks, microfinance bank, Primary Mortgage Banks and Mobile Money Operators in Nigeria; more than 281 million bank depositors across all insured institutions are protected by the corporation.