BREAKING: Hope Rises As NDIC Raises Bank Depositors’ Coverage From N500000 To N5 Million

BREAKING: Hope Rises As NDIC Raises Bank Depositors’ Coverage From N500000 To N5 Million—-The Nigerian Deposit Insurance Corporation (NDIC) has increased the maximum coverage of all deposit-taking financial institutions across all levels.

Managing director of the NDIC, Hassan Bello, who made this announcement on Thursday in Abuja, said the coverage has increased the maximum deposit insurance coverage of Deposit Money Banks (DMBs) from N500,000 to N5million, which would provide full coverage of 98.98 per cent of the total depositors compared with the current cover of 89.20 per cent.

The MD said in terms of the value of deposit covered, the revised coverage would increase the value of deposits covered by deposit insurance to 25.37 per cent compared with the current cover of 6.31 per cent of total value of deposits.

“For Microfinance bank, the maximum deposit insurance coverage was increased from N200,000 to N2 million would provide full coverage of 99.27 per cent of the total depositors compared with the current level of 98.76 per cent and would increase the value of deposits covered by deposit insurance to 34.43 per cent compared with 14.38 per cent of total value of deposit, currently covered.

“Primary Mortgage Banks (PMBs): The increase of the maximum deposit insurance coverage from N500,000 to N2 million would provide full coverage of 99.34 per cent of the total depositors compared with the current 97.98 per cent and would increase the value of deposits covered by deposit insurance to 21.04 per cent compared with 10.77 per cent.

“Payment Service Banks (PSBs): The increase of the maximum deposit insurance coverage from N500,000 to N2 million would provide full coverage of 99.99 per cent of the total number of depositors and would increase the value of deposits covered by deposit insurance to 43.10 per cent of the total value deposits from the current cover of 40.60 per cent.

“Subscribers of Mobile Money Operators: The increase of the maximum Pass-through deposit insurance coverage from N500,000 to N5 million per subscriber per MMO as the applicable coverage level for depositors of DMBs,” Bello stated.