The Managing Director of the Nigeria Deposit Insurance Corporation (NDIC), Mr. Thompson Sunday, says that the Corporation currently provides full insurance cover for 98.98 per cent of the Deposit Money Banks’ total deposits.
Speaking at the NDIC Special Day at the ongoing 20th Abuja International Trade Fair, with the theme, “Sustainability: Consumption, Incentives and Taxation”, he restated NDIC’s commitment to ensuring financial sector stability, in collaboration with the Central Bank of Nigeria (CBN).
Represented by the Director of Performance Management, Mrs. Bimpe Akande, Mr. Thompson said: “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.”
According to him, the NDIC is dedicated to protecting Nigerians’ bank and in collaboration with the Central Bank of Nigeria (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 stability by reassuring Nigerians of the security of their savings.
“Significant progress has been made in protecting depositors’ funds, notably through the increase in the maximum deposit insurance coverage, which has broadened protection across various licensed banks,” he said.
He added that the corporation had, over three decades, played a vital role in safeguarding depositors’ funds, particularly the most vulnerable, and fortifying the financial system.
The NDIC boss assured that banks’ depositors have no reason to worry about the safety of their funds, as all their claims in excess of the insured deposits.
“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,” he added.
He warned members of the public against patronising Ponzi schemes and other fraudulent investment platforms.
GIK/APA