NDIC says 281 million depositors insured against bank failure

The Nigeria Deposit Insurance Corporation (NDIC) has announced that over 281 million depositors nationwide are now protected against potential losses due to bank failures. This significant figure reflects the outcome of recent reforms aimed at expanding deposit insurance coverage and improving the efficiency of reimbursements for affected customers. The announcement was made by Thompson Sunday, the Managing Director and Chief Executive Officer of the NDIC, during the second quarter 2026 Citizens and Stakeholders’ Engagement Session organized by the Federal Ministry of Finance in Abuja.

Sunday detailed that the NDIC currently insures deposits across 914 licensed financial institutions, including traditional banks, non-interest banks, microfinance banks, primary mortgage banks, and mobile money operators. He emphasized that the majority of depositors—over 98 percent—are fully insured for their entire balances, thanks to an increase in deposit insurance limits implemented in May 2024. According to the updated policy, depositors in conventional banks can now have their deposits insured up to N5 million, whereas those using microfinance banks, primary mortgage banks, and payment service banks benefit from coverage up to N2 million. Additionally, mobile money users are protected up to N5 million. These changes mark the first major revision of the maximum deposit insurance limit since 2016.

The reforms have led to a substantial improvement in the percentage of fully insured depositors. For instance, the proportion of fully insured customers in deposit money banks has risen from 89.2 percent to 98.98 percent. Similarly, the coverage for microfinance banks, primary mortgage banks, and payment service banks has reached 99.27 percent, 99.34 percent, and 99.99 percent, respectively. Sunday attributed these improvements to technological advancements that have drastically reduced the time required to reimburse depositors after a bank fails. Previously, such processes could take years, but today they are completed within days using tools like the Bank Verification Number.

In addition to enhancing insurance coverage, the NDIC has been actively involved in disbursing funds to affected depositors. As of the latest reports, the corporation has already paid out more than N54.93 billion to Heritage Bank customers, benefiting approximately 698,040 individuals. In 2025 alone, the NDIC distributed N4.06 billion to 13,446 insured depositors and N33.59 billion to uninsured depositors of failed banks. These figures underscore the organization's commitment to ensuring that depositors receive timely compensation even in the event of a bank collapse.

The reforms have been bolstered by the enactment of the NDIC Act 2023, replacing the previous legislation from 2006. This new act empowers the NDIC to effectively manage failing banks, recover assets, and safeguard depositors' interests. It also ensures that depositors are prioritized over creditors and shareholders during the liquidation process, thereby reinforcing the stability of the financial sector. Furthermore, the law strengthens the Deposit Insurance Fund and enhances the corporation’s capabilities in asset recovery and enforcement.

To ensure the health of the banking sector, the NDIC conducted 287 on-site examinations of banks in 2025. During the same period, it successfully addressed 1,196 out of 1,407 depositor complaints received. The corporation continues to collaborate with the Central Bank of Nigeria (CBN) on off-site surveillance, serving as an early warning system for potential issues. Moreover, 32 banks met the recapitalization deadline set for March 31, 2026, having raised over N4.61 trillion in fresh capital. The NDIC supported the CBN in verifying capital, monitoring its quality, and identifying banks that might be undercapitalized.

Raymond Omachi, the Permanent Secretary of the Federal Ministry of Finance, emphasized the importance of the engagement session in fostering transparency, accountability, and communication between the government and its citizens. He stated that the initiative aligns with the ministry’s goals of sharing its policies, programs, and achievements related to the implementation of presidential priorities and ministerial deliverables. Omachi acknowledged the crucial role played by the NDIC in maintaining public confidence in the banking system and contributing to overall financial stability.