The Nigeria Deposit Insurance Corporation has announced the rise in the maximum deposit Insurance coverage for depositors of banks by 900 per cent to N5 million.
This was disclosed in a Press release by the Managing Director/Chief Executive of NDIC, Bello Hassan via its official X handle on Thursday.
He said the increase of the maximum deposit insurance coverage from N500,000 to N5,000,000 would enable total coverage of 98.98 per cent of the total depositors compared with the current cover of 89.20 per cent.
The figures show that the revised coverage would increase the value of deposits covered by deposit insurance to 25.37% compared with the current cover of 6.31% of the total value of deposits.
For Deposit Money Banks, the increase of the maximum deposit insurance coverage from N500,000 to N5,000,000 would provide full coverage of 98.98% of the total depositors compared with the current cover of 89.20%. In terms of the value of deposits covered, the revised coverage would increase the value of deposits covered by deposit insurance to 25.37% compared with the current cover of 6.31% of the total value of deposits.
While, for Microfinance Banks, the increase of the maximum deposit insurance coverage from N200,000 to N2,000,000, would provide full coverage of 99.27% of the total depositors compared with the current level of 98.76% and would increase the value of deposits covered by deposit insurance to 34.43% compared with 14.38% of the total value of the deposit, currently covered.
Similarly, for Payment Service Banks, the increase of the maximum deposit insurance coverage from N500,000 to N2,000,000 would provide full coverage of 99.99% of the total number of depositors and would increase the value of deposits covered by deposit insurance to 43.10% of the total value deposits from the current cover of 40.60%.
According to the statement, the new policy adoption of the revised maximum deposit insurance coverage is supported by the Corporation’s current funding, represented by the balances in the various Deposit Insurance Funds, expected annual premium collection, enhanced supervision that would reduce the likelihood of bank failures, effective bank resolution frameworks and other funding arrangements provided by the NDIC Act No. 33 of 2023.
