NDIC raises deposit protection as stronger banking confidence supports $1trn economy
The Nigeria Deposit Insurance Corporation (NDIC) has stepped up measures to protect household savings and business funds in the banking system, arguing that stronger depositor confidence is critical to building a resilient financial sector capable of supporting Nigeria’s ambition of becoming a $1 trillion economy by 2030.
Managing Director and Chief Executive of the NDIC, Thompson Oludare Sunday, said a trusted banking system was essential to protecting working capital, supporting payments and improving access to credit for businesses seeking to invest and expand.
Sunday spoke at the NDIC Special Day during the 21st Abuja International Trade Fair in Abuja, themed “Resilience: Trade, Taxation and the Economy.”
He said the corporation had strengthened the country’s financial safety net through enhanced deposit insurance coverage introduced in 2024.
Under the new limits, deposits of up to N5 million per depositor are insured in each Deposit Money Bank and Mobile Money Operator, while the maximum insured amount stands at N2 million per depositor in Microfinance Banks, Primary Mortgage Banks and Payment Service Banks.
The NDIC said the higher coverage provides full protection for more than 98 per cent of depositors across insured institutions, shielding households, small businesses and other vulnerable customers from the immediate consequences of a bank failure.
The protection has wider economic implications because confidence in banks encourages Nigerians and businesses to keep funds within the formal financial system, allowing those resources to support payments, savings and credit creation.
Sunday said the NDIC had also transformed the reimbursement of depositors of failed banks by deploying Bank Verification Number, Single Customer View, NIBSS infrastructure and other digital systems.
He said verified depositors of failed banks can now receive their insured deposits within days of closure, a significant shift from the slower manual processes previously associated with claims.
The corporation is also repositioning itself from merely paying depositors after bank failures to becoming a “Risk Minimiser” through early identification of vulnerabilities and stronger safeguards against financial instability.
Sunday said the NDIC had deployed Risk-Based Supervision, an enhanced Differential Premium Assessment System, the Single Customer View framework, a distress-resolution suite and the Bank Liquidation Management System, alongside closer collaboration with the Central Bank of Nigeria and other financial-safety-net institutions.
The corporation also warned Nigerians against keeping substantial funds outside licensed financial institutions or investing in unregulated schemes promising unusually high returns.
Sunday said repeated Ponzi-scheme failures had demonstrated the financial cost of poor investment decisions and urged Nigerians to verify investment operators and seek information before committing their funds.
The NDIC has also intensified its use of technology. Sunday said the corporation launched an upgraded website on September 19, providing easier access to information on insured institutions, claims processing and depositor protection.
The platform includes digital services for filing claims, checking insured banks, reporting failed banks and accessing frequently asked questions, as well as an artificial-intelligence-
He urged depositors to ensure that their account information is accurate and properly linked to their BVNs to facilitate faster claims processing.
For businesses, particularly small enterprises, the importance of the measures extends beyond compensation after a bank failure. Protecting deposits helps preserve working capital and payment capacity, which are essential to keeping businesses operating during periods of financial stress.
The NDIC therefore sees depositor protection, financial literacy, technology and stronger supervision as interconnected components of a resilient financial system.
The broader economic test is whether these safeguards can deepen confidence in regulated financial institutions, encourage greater formal savings and ensure that the banking system remains capable of supporting investment, trade and business expansion as Nigeria pursues faster and more inclusive economic growth.
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