NDIC says 281 million depositors insured against bank failure

The Nigeria Deposit Insurance Corporation has said more than 281 million depositors across the country’s banking system are protected against bank failure, following reforms that significantly expanded deposit insurance coverage and accelerated reimbursement of customers of failed banks.

The Managing Director and Chief Executive Officer of the NDIC, Thompson Sunday, disclosed this on Monday during the second quarter 2026 Citizens and Stakeholders’ Engagement Session organised by the Federal Ministry of Finance in Abuja.

According to Sunday, the corporation currently provides deposit insurance coverage across 914 licensed financial institutions, while over 98 per cent of depositors are fully insured for their entire balances following the upward review of deposit insurance limits in May 2024.

A copy of his presentation document read, “914 licenced banks covered, every Deposit Money Banks, Non-Interest Banks, microfinance bank, Primary Mortgage Banks and Mobile Money Operators in Nigeria; more than 281 million bank depositors across all insured institutions are protected by the corporation.”

The NDIC boss said the improved coverage followed the first review of the Maximum Deposit Insurance Coverage since 2016.

Under the revised framework, insurance coverage for depositors in Deposit Money Banks increased from N500,000 to N5m, while customers of Microfinance Banks, Primary Mortgage Banks and Payment Service Banks now enjoy insurance cover of up to N2m. Mobile money subscribers are also covered up to N5m.

He said the reform resulted in 98.98 per cent of Deposit Money Bank customers being fully insured, compared with 89.2 per cent before the review, while full coverage for customers of Microfinance Banks, Primary Mortgage Banks and Payment Service Banks rose to 99.27 per cent, 99.34 per cent and 99.99 per cent respectively.

Sunday also highlighted improvements in the speed of reimbursing depositors after bank failures, saying technology had reduced payment timelines from years to days through the use of the Bank Verification Number.

He noted that the corporation has so far paid more than N54.93bn in insured deposits to Heritage Bank customers, reaching 698,040 depositors.

The NDIC boss also disclosed that in 2025 alone, the NDIC paid N4.06bn to 13,446 insured depositors and N33.59bn to uninsured depositors of failed banks.

Sunday said the reforms were reinforced by the NDIC Act 2023, which replaced the 2006 Act and strengthened the corporation’s powers to resolve failing banks, recover assets and protect depositors.

He said the law also gives depositors priority over creditors and shareholders during bank liquidation, strengthens the Deposit Insurance Fund and enhances the corporation’s asset recovery and enforcement powers.

The NDIC further disclosed that it carried out 287 on-site examinations of banks in 2025, resolved 1,196 out of 1,407 depositor complaints received during the year and continued off-site surveillance as an early warning mechanism in collaboration with the Central Bank of Nigeria.

It also noted that 32 banks met the March 31, 2026 recapitalisation deadline after raising more than N4.61tn in fresh capital, with the corporation supporting the CBN through capital verification, monitoring capital quality and identifying undercapitalised banks early.

Also speaking, the Permanent Secretary of the Federal Ministry of Finance, Mr Raymond Omachi, said the engagement formed part of the ministry’s commitment to strengthening transparency, accountability and communication with citizens and key stakeholders.

According to Omachi, the platform enables the ministry to share its policies, programmes and achievements in implementing the Presidential Priorities and Ministerial Deliverables assigned to its agencies.

Omachi said, “This engagement is part of the Federal Ministry of Finance’s commitment to strengthening transparency, accountability, and communication with citizens and key stakeholders.

“As a critical component of the nation’s financial safety-net framework, the NDIC plays an important role in protecting depositors, promoting public confidence in the banking system, and contributing to the stability of the financial sector.”