The Nigeria Deposit Insurance Corporation (NDIC) has announced that more than 281 million depositors across Nigeria’s banking sector are protected against bank failures following reforms that have expanded deposit insurance coverage and improved the speed of reimbursing customers of failed financial institutions.
The disclosure was made on Monday by the Managing Director and Chief Executive Officer of the NDIC, Thompson Sunday, during the Second Quarter 2026 Citizens and Stakeholders’ Engagement Session organised by the Federal Ministry of Finance in Abuja.
According to DIP CONNECT ONLINE NEWS, Sunday stated that the corporation currently provides deposit insurance coverage for 914 licensed financial institutions, adding that over 98 per cent of depositors are now fully protected for their total account balances following the upward review of deposit insurance limits introduced in May 2024.
A presentation made during the event indicated that all licensed Deposit Money Banks, Non-Interest Banks, Microfinance Banks, Primary Mortgage Banks and Mobile Money Operators in Nigeria are covered under the insurance scheme, safeguarding more than 281 million depositors nationwide.
Sunday explained that the expanded protection followed the first review of the Maximum Deposit Insurance Coverage (MDIC) since 2016.
Under the revised framework, insurance coverage for customers of Deposit Money Banks increased from N500,000 to N5 million, while customers of Microfinance Banks, Primary Mortgage Banks and Payment Service Banks now enjoy coverage of up to N2 million. Mobile money subscribers are also protected up to N5 million.
He noted that the review raised the proportion of fully insured customers of Deposit Money Banks from 89.2 per cent to 98.98 per cent. Coverage for customers of Microfinance Banks increased to 99.27 per cent, Primary Mortgage Banks to 99.34 per cent, while Payment Service Banks recorded 99.99 per cent full insurance coverage.
The NDIC boss also highlighted major improvements in the reimbursement process for depositors of failed banks, explaining that the use of the Bank Verification Number (BVN) has reduced payment timelines from several years to just a few days.
He disclosed that the corporation has paid more than N54.93 billion in insured deposits to 698,040 customers of Heritage Bank. In addition, the NDIC paid N4.06 billion to 13,446 insured depositors and N33.59 billion to uninsured depositors of failed banks during 2025.
Sunday said these reforms have been strengthened by the NDIC Act 2023, which replaced the 2006 legislation and expanded the corporation’s powers to resolve failing banks, recover assets and safeguard depositors.
According to him, the law also gives depositors priority over creditors and shareholders during bank liquidation, strengthens the Deposit Insurance Fund and enhances the corporation’s authority to recover assets and enforce compliance.
The NDIC further revealed that it conducted 287 on-site examinations of banks in 2025, successfully resolved 1,196 out of 1,407 depositor complaints received during the year, and continued off-site surveillance in collaboration with the Central Bank of Nigeria (CBN) as part of its early warning system.
The corporation also disclosed that 32 banks met the March 31, 2026 recapitalisation deadline after raising more than N4.61 trillion in fresh capital. It added that the NDIC supported the CBN through capital verification, assessment of capital quality and early identification of undercapitalised banks.
Also speaking at the event, the Permanent Secretary of the Federal Ministry of Finance, Raymond Omachi, said the engagement reflects the ministry’s commitment to promoting transparency, accountability and effective communication with citizens and stakeholders.
He explained that the platform provides an opportunity for the ministry to showcase the policies, programmes and achievements of its agencies in delivering the Presidential Priorities and Ministerial Deliverables.
Omachi described the NDIC as a critical component of Nigeria’s financial safety framework, noting that the corporation plays a vital role in protecting depositors, strengthening public confidence in the banking system and maintaining the stability of the nation’s financial sector, DIP CONNECT ONLINE NEWS reports.
ADEOLA KUNLE
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