NDIC Sends Message to Bank Customers on Safety of Savings in Their Accounts
- The NDIC has assured Nigerians that their savings in licensed commercial banks in Nigeria are 99% safe
- There is also assurance that nearly all customers in microfinance, mortgage, and payment service banks are fully insured
- Nigerians have been warned against Ponzi schemes, urging them to keep funds only in CBN-licensed banks
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Nigeria Deposit Insurance Corporation (NDIC) has reassured bank customers of the safety of their savings,.
The corporation stated that all depositors in Deposit Money Banks (DMBs) and other licensed financial institutions are fully covered by its insurance scheme.
Source: Getty Images
Thompson Sunday, the NDIC Managing Director, disclosed this during the NDIC Special Day at the ongoing 20th Abuja International Trade Fair, with the theme 'Sustainability: Consumption, Incentives, and Taxation.
He noted that the agency currently provides full insurance cover for 98.98% of total deposits in DMBs.
Represented by the Director of Performance Management, Bimpe Akande, Sunday said depositors of DMBs, Mobile Money Operators and Non-Interest Banks are insured up to N5 million, while those of Payment Service Banks, Microfinance Banks and Primary Mortgage Banks enjoy coverage of up to N2 million.
His words:
“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.
“We are dedicated to protecting Nigerians’ savings and maintaining stability in the banking sector in collaboration with the Central Bank of Nigeria.”
The NDIC boss said depositors with balances above the insured limit are also entitled to liquidation dividends in the event of a bank failure.
These payouts are made from the proceeds of sold bank assets and recovered debts, BusinessDay reports.
Sunday also cautioned the public against investing in Ponzi schemes and unlicensed financial platforms.
He warned:
“Always ensure your funds are placed only in Central Bank of Nigeria licensed banks, all of which are covered by deposit insurance provided by the NDIC."
Source: Getty Images
List of Insured Institutions
This is a list of Insured institutions which are all deposit-taking financial institutions licensed by the Central Bank of Nigeria (CBN) such as
- Commercial Banks such as Access, UBA, Zenith, others
- Merchant Banks - Coronation Merchant Bank Limited, FBN Quest Merchant Bank Limited, others
- Microfinance Banks - Bama Microfinance, Zafec Microfinance, others
- Mobile Money Operators - Opay Digital, Palmpay Ltd and all bank led
- Non-Interest Banks -Jaiz Bank, Lotus Bank Ltd.
- Non-Interest Window Banks - Suntrust Bank Nigeria Limited
- Payment Service Banks - Hope PSB, SmartCash PSB, others
- Primary Mortgage Banks - Abbey Mortgage Bank , FBN Mortgages Ltd, others
List of banks that have met CBN’s capital requirement
Earlier, Legit.ng reported that the race to meet CBN's capital requirements is on, as several top Nigerian banks have yet to achieve the target
The CBN, in March 2024, directed lenders to raise fresh equity to meet higher paid-up capital thresholds: N500 billion for international banks, N200 billion for national banks, and N50 billion for regional banks.
Among the banks that have met the requirements are Access Holdings, Zenith, Stanbic IBTC, Wema, Providus, and Jaiz.
Proofreading by James Ojo, copy editor at Legit.ng.
Source: Legit.ng
