Put your money in CBN licensed banks, NDIC tells Nigerians
Omeiza Bilal
The Nigeria Deposit Insurance Corporation (NDIC), has warned Nigerians to always ensure they bank with Central Bank of Nigeria (CBN) licenced banks.
Speaking during the Corporation’s special day at the 20th Edition of the Abuja International Trade Fair organised by the Abuja Chamber of Commerce and Industry (ACCI), Thursday, NDIC’s Managing Director, Sunday Thompson, also urged them to be vigilant against ponzi schemes.
The NDIC MD, who was represented by represented by Mrs Bimpe Akande, the Director, Performance Management Department of NDIC, reassured Nigerians that their funds in CBN licenced banks were safe as they were covered by deposit insurance provided by the Corporation.
According to him, this vigilance is crucial to protecting your hard-earned savings.
”For over three decades, the NDIC has played a vital role in safeguarding depositors funds, particularly the most vulnerable, and fortifying the financial system.
”Our primary objectives include insuring deposits in licenced banks, supervising financial institutions, managing distressed banks, and ensuring a smooth resolution process in the event of bank failures.
”We are dedicated to protecting Nigerian bank, in collaboration with the CBN, we strive to maintain stability in the banking sector, enforce compliance with banking regulations, and exercise effective oversight over insured deposit-taking institutions.
”Our mission, embodied in the tagline ‘Protecting your bank deposits,’ is to promote financial inclusion and ability by reassuring Nigerians of the security of their savings,” he said.
Part of efforts by the Corporation to protect depositors’ funds, the NDIC boss said, was to the increase in the maximum deposit insurance coverage, which had broadened protection across various licenced banks.
“Currently, the NDIC insures depositors of Deposit Money Banks (DMBs), Mobile Money Operators and Non-Interest Banks, up to a coverage limit of five million naira. Depositors of Payment Service Banks (PSBs) Microfinance Banks (MFBs) and Primary Mortgage Banks (PMBs) are insured up to two million naira. This enhanced coverage ensures that approximately 98.98% of total depositors in Deposit Money Banks, 99.27% in Microfinance Banks, 99.34% in Primary Mortgage Banks, and 99.99% in Payment Service Banks are protected, reflecting NDIC’s unwavering commitment to fulfilling its mandate.
“In the event that a bank fails, depositors with account balances exceeding the insured coverage limit receive an initial payment up to the maximum insured amount. Their remaining balances are then paid through liquidation dividends. Liquidation dividends refer to payouts made to depositors and creditors from the proceeds generated from the sale of a failed bank’s assets and recovered debts during the liquidation process. These dividends are usually paid on a pro-rata basis, meaning depositors receive a proportionate share of the recovered funds relative to their outstanding balances beyond the insured limit,” Sunday added.
In his remarks, the President Abuja Chamber of Commerce and Industry (ACCI), Emeka Obegolu, noted that the NDIC’s role in Nigeria’s financial landscape space has helped to stabilise the country’s system.
According to Obegolu, who was represented by ACCI Director-General, ACCI, said the Chief Agabaidu Jideani, “We particularly commend NDIC’s initiatives in advancing financial inclusion, especially through its digital innovations and strong consumer protection framework.
By extending deposit insurance coverage beyond deposit money banks to include microfinance banks, mortgage banks, non-interest banks, payment service banks, and mobile money operators, NDIC has shown responsiveness to the evolving dynamics of Nigeria’s financial landscape. These interventions not only protect depositors but also create a more enabling environment for SMEs and entrepreneurs to participate confidently in the economy.
For us at the ACCI, the NDIC is more than a regulator; it is a strategic partner in advocacy and economic development. By working together, we can build stronger linkages between financial safety, enterprise growth, and national development. This synergy is vital in advancing Nigeria’s competitiveness, reducing business risks, and ensuring that our financial system supports innovation, job creation, and sustainable investment.
