NDIC says over 98% of depositors fully insured against bank failures

THE Nigeria Deposit Insurance Corporation (NDIC) says more than 98 percent of bank depositors in the country are now fully protected against bank failures following the upward review of deposit insurance coverage.

Speaking on Monday at the second quarter (Q2) 2026 citizens and stakeholders’ engagement session organised by the Federal Ministry of Finance in Abuja, NDIC Managing Director, Mr Thompson Sunday, said the enhanced insurance limits have significantly strengthened depositor confidence and the stability of the banking sector.

According to him, the revised coverage, which was approved in May 2024, marked the first substantial increase in the maximum deposit insurance limit since 2016.

“For the first time since 2016, the corporation materially increased the maximum deposit insurance coverage for each depositor,” Sunday said.

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He explained that the reform increased the proportion of fully insured depositors to 98.98 percent from 89.2 percent before the review. He added that coverage for customers of microfinance banks, primary mortgage banks and payment service banks rose to 99.27 percent, 99.34 percent and 99.99 percent respectively.

Sunday said the maximum insurance coverage for deposit money banks was raised from N500,000 to N5 million, while customers of microfinance banks, primary mortgage banks and payment service banks now enjoy insurance coverage of up to N2 million.

He also disclosed that mobile money subscribers are now covered for deposits of up to N5 million under the revised framework.

“Ensuring full coverage for depositors with balances up to N5 million strengthens the stability and resilience of the banking sector,” he said.

The NDIC chief noted that a resilient banking system encourages long-term savings and investment, while helping to mobilise the capital needed to support sustainable and inclusive economic growth and Nigeria’s ambition of becoming a $1 trillion economy by 2030.