By Seun Ibiyemi
The Nigeria Deposit Insurance Corporation (NDIC) has disclosed that its enhanced deposit insurance coverage now provides full protection for more than 98 per cent of depositors across insured financial institutions, as it urged Nigerians to keep their funds in licensed and regulated institutions.
The Managing Director and Chief Executive of the NDIC, Thompson Oludare Sunday, disclosed this on Wednesday while delivering the keynote address at the Corporation’s Special Day during the 21st Abuja International Trade Fair, organised by the Abuja Chamber of Commerce, Industry, Mines and Agriculture.
The trade fair is themed “Resilience: Trade, Taxation and the Economy.”
Sunday said the theme was particularly relevant to Nigeria’s ongoing economic transformation and efforts to build a stronger, more resilient and productive economy, in line with the Federal Government’s ambition of achieving a $1 trillion economy by 2030.
According to him, the NDIC has, for more than three decades, remained a critical pillar of Nigeria’s financial safety-net architecture through its responsibilities for deposit guarantee, bank supervision in collaboration with the Central Bank of Nigeria, failure resolution and bank liquidation.
He said the Corporation’s mandate was directly linked to the resilience of the wider economy because businesses depend on a trusted financial system to safeguard working capital, facilitate payments and support access to credit for investment and expansion.
The NDIC chief executive recalled that the Corporation enhanced its deposit insurance coverage in 2024, raising the maximum insured amount to ₦5 million per depositor per Deposit Money Bank (DMB) and Mobile Money Operator (MMO).
For Microfinance Banks (MFBs), Primary Mortgage Banks (PMBs) and Payment Service Banks (PSBs), the maximum insured limit was increased to ₦2 million per depositor.
He said the enhanced coverage had provided full protection for over 98 per cent of depositors across insured institutions, helping to shield households, small businesses and other vulnerable depositors from the immediate impact of bank failures.
For depositors whose balances exceed the insured limits, Sunday said the Corporation would continue to pay liquidation dividends from recoveries made through the collection of debts owed to failed institutions and the disposal of their physical assets.
“Our objective is straightforward: no depositor should lose confidence in the banking system merely because an insured institution has failed,” he said.
Sunday also highlighted the Corporation’s use of technology to make the reimbursement of depositors of failed banks faster and more seamless.
He said the NDIC was deploying the Bank Verification Number (BVN), Single Customer View (SCV), NIBSS infrastructure and other digital solutions to replace cumbersome manual processes.
According to him, verified depositors of failed banks can now receive their insured deposits within days of a bank’s closure.
The NDIC boss said the Corporation was repositioning itself from merely paying claims after bank failures to becoming a “Risk Minimizer” capable of identifying vulnerabilities early, strengthening safeguards and preventing institutional problems from escalating into systemic crises.
He said the Corporation had continued to strengthen its institutional framework in line with global best practices through initiatives including Risk-Based Supervision (RBS), an enhanced Differential Premium Assessment System (DPAS), the Single Customer View Framework, Distress Resolution suites and the Bank Liquidation Management System (BLMS).
He added that the NDIC was also strengthening collaboration with the Central Bank of Nigeria and other institutions within the financial safety-net architecture.
The NDIC chief executive used the occasion to warn Nigerians against keeping substantial funds outside the formal banking system or entrusting their savings to unlicensed fund managers offering unusually high returns.
He cautioned that the collapse of Ponzi schemes had repeatedly demonstrated the financial and emotional consequences of placing hard-earned resources in unregulated investment schemes.
He urged Nigerians to investigate and verify investment opportunities before committing their money, particularly where promised returns appear unrealistic.
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Sunday also disclosed that the Corporation launched an upgraded website on September 19, 2026, as part of efforts to make depositor protection more accessible and transparent.
He said the new digital platform provides information on enhanced deposit insurance coverage limits, automated features for claims processing and an upgraded directory through which members of the public can verify institutions insured by the NDIC.
The website also features a Quick Action Bar providing direct access to four key services: File Claim, Check Banks, Report Failed Bank and FAQs.
An AI-powered virtual assistant has also been incorporated into the platform to improve user interaction and provide faster access to information.
Sunday described the development as more than a website upgrade, saying it represented another step towards building a more accessible, responsive and technology-driven NDIC.
He encouraged depositors, creditors and shareholders of closed banks to use the Corporation’s digital platforms when processing their claims.
He further advised depositors to ensure that their account information is accurate and consistent across banks and properly linked to their BVNs to facilitate faster reimbursement.
According to him, the deployment of technology means depositors no longer need to routinely visit failed bank premises or NDIC offices for physical verification or carry large volumes of documents between locations.
Despite advances in technology and regulation, Sunday said financial security could not be guaranteed without greater financial literacy among Nigerians.
He described financial literacy as the first line of defence for depositors and business owners, urging members of the public and businesses to strengthen their understanding of financial services, embrace digital finance responsibly and maintain sound financial practices.
He also encouraged Nigerians to engage regulatory institutions whenever they require guidance.
“The more informed the public becomes, the stronger our collective capacity to build a resilient financial system,” he said.
Sunday invited participants at the trade fair to visit the NDIC Pavilion, where officials were providing information on deposit insurance, depositor protection, claims processing, financial literacy and other services offered by the Corporation.
He congratulated the Abuja Chamber of Commerce, Industry, Mines and Agriculture on the successful hosting of the 21st Abuja International Trade Fair and expressed appreciation to traditional rulers, exhibitors, participants and members of the media for attending the event.
