The Nigeria Deposit Insurance Corporation (NDIC) has issued a strong reassurance to bank customers across Nigeria regarding the safety of their funds, while simultaneously cautioning the public against fraudulent investment schemes.
Deposit Insurance Cover and Regulatory Vigilance
Speaking at the 46th Kano International Trade Fair on Wednesday, 4th December 2024, the Managing Director and Chief Executive of NDIC, Thompson Oludare Sunday, affirmed the corporation's role as a protector of depositors. Represented by the Executive Director, Procurement, Shokunbi Kayode, Sunday detailed the current insurance limits.
He stated that depositors in Deposit Money Banks (DMBs) and Mobile Money Operators (MMOs) are insured up to ₦5,000,000. For customers of Microfinance Banks, Primary Mortgage Banks, and Payment Service Banks, the cover is up to ₦2,000,000. This payout, he assured, is prompt in the unlikely event of a bank failure.
Sunday emphasized that the NDIC is working in close collaboration with the Central Bank of Nigeria (CBN) to supervise financial institutions effectively. This partnership aims to maintain stability and insulate Nigeria's banking sector from global economic shocks.
A Stern Warning Against Fraudulent Schemes
Beyond assurances, the NDIC boss delivered a crucial warning. He urged the public to remain vigilant and avoid Ponzi schemes and unlicensed investment platforms.
"Your vigilance is crucial to safeguarding your hard-earned savings," Sunday cautioned. He advised Nigerians to only place deposits in CBN-licensed financial institutions that are covered by the NDIC deposit insurance scheme.
To foster public awareness, he invited trade fair attendees to visit the NDIC pavilion, where officials are ready to provide insights and answer questions on deposit insurance.
Commitment to Stability and Smooth Recapitalisation
Looking ahead, the MD addressed the upcoming bank recapitalisation exercise with a March 2026 deadline. He pledged that the NDIC would ensure the process is smooth and stands ready to implement any necessary regulatory interventions to preserve confidence in the financial system.
He reiterated the corporation's core mandate, which includes:
- Insuring deposits in licensed banks.
- Supervising financial institutions.
- Managing and resolving distressed banks.
- Liquidating failed banks in an orderly manner.
"We remain dedicated to protecting Nigerians’ bank deposits from financial instability," Sunday concluded, highlighting NDIC's role in driving economic growth.
In a related address, the Kano State Commissioner for Women Affairs, Hajiya Amina Sani Abdullahi, commended the Kano Chamber of Commerce for organizing the fair. She reaffirmed the state government's commitment to supporting entrepreneurship and strengthening commercial infrastructure to stimulate economic prosperity.
