In the event of a bank failure, the Nigeria Deposit Insurance Corporation stated that over 97 percent of depositors at deposit money banks (DMBs) in the country would be completely protected by the N500,000 Maximum Insured Limit.
The Managing Director/ Chief Executive Officer of the Nigeria Deposit Insurance Corporation, NDIC, Mr Bello Hassan stated this during the 2021 Finance Correspondents and Business Editors (FICAN) workshop organized by the Commission.
The NDIC’s maximum coverage limits of N500,000 per depositor in commercial, merchant, and noninterest banks, primary mortgage banks, and mobile money operators, as well as N200,000.00 per depositor in microfinance banks, remained the most adequate and robust in the world, according to the NDIC’s CEO.
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What he said
According to Bello Hassan, the total number of accounts in deposit money banks in 2016, 2017, 2018, and 2019 was 83.0 million, 99.1 million, 112.0 million, and 128.4 million, respectively, with the NDIC’s N500,000 Maximum Insured Limit (MIL) fully covering 99.4 percent, 97.6 percent, 97.5 percent, and 97.6 percent of accounts, respectively.
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He added, ”It could be observed that the Corporation’s deposit insurance coverage limits are not only adequate, but also robust enough to engender confidence in our banking system.”
Hassan said that these figures mean that just around 3% of accounts/depositors are not currently fully protected by the current coverage limitations and that this means that in the case of a bank failure, more than 97 percent of depositors would be fully insured by the Corporation.