NDIC raises deposit insurance cover to N5m, urges Nigerians to shun ponzi schemes
Omeiza Bilal
The Nigeria Deposit Insurance Corporation (NDIC) has urged Nigerians to keep their money with licensed and regulated financial institutions, warning that unregulated investment schemes and promises of extraordinary returns could result in devastating financial losses.
The Managing Director and Chief Executive of the corporation, Mr Thompson Oludare Sunday, gave the warning on Wednesday at the NDIC Special Day during the 21st Abuja International Trade Fair, organised by the Abuja Chamber of Commerce, Industry, Mines and Agriculture.
Speaking on the theme of the fair, “Resilience: Trade, Taxation and the Economy,” Sunday said a safe and dependable financial system was essential to the success of businesses and the realisation of the Federal Government’s vision of a $1 trillion economy by 2030.
He said the NDIC had remained a critical pillar of Nigeria’s financial safety-net architecture for over three decades through deposit insurance, bank supervision in collaboration with the Central Bank of Nigeria, failure resolution and bank liquidation.
According to him, the corporation increased deposit insurance coverage in 2024 to N5 million per depositor in each Deposit Money Bank and Mobile Money Operator, while depositors in Microfinance Banks, Primary Mortgage Banks and Payment Service Banks are covered up to N2 million.
The enhanced limits, he said, provide full protection for more than 98 per cent of depositors in insured institutions, shielding households, small businesses and vulnerable customers from the immediate impact of bank failures.
Sunday added that the NDIC had transformed the reimbursement process through the use of Bank Verification Numbers, the Single Customer View framework, NIBSS infrastructure and other digital tools. As a result, verified depositors of failed banks can now receive their insured deposits within days of closure.
He described the corporation as a “risk minimiser,” rather than merely a payer of claims, noting that the NDIC was strengthening early-warning systems and working with other financial regulators to prevent institutional weaknesses from becoming systemic crises.
The NDIC boss also unveiled the corporation’s upgraded website, launched on September 19, 2026, describing it as a one-stop digital gateway for depositors and stakeholders. The platform provides access to claims processing, information on insured banks, a complaint channel, frequently asked questions and an AI-powered virtual assistant.
He advised depositors to ensure that their account details were accurate and properly linked to their BVNs to facilitate faster reimbursement.
Sunday further urged Nigerians to improve their financial literacy, use digital financial services responsibly and verify investment opportunities before committing their funds.
“If an investment promise sounds too good to be true, Nigerians should pause, ask questions and verify,” he said.
He invited visitors to the NDIC pavilion at the fair to obtain information on deposit insurance, claims processing, depositor protection and financial literacy.
