June 18, 2024

Nigerian Govt raises Maximum Deposit Insurance Coverage for banks

The Nigerian Government has reviewed upward the Maximum Deposit Insurance Coverage for banks operating within the country.

In a recent briefing with journalists, Nigeria Deposit Insurance Corporation Managing Director, Bello Hassan disclosed the new coverage benchmarks.

The NDIC for Deposit Money Banks has been raised from N500,000 to N5 million, for Microfinance Banks from N200,000 to N2 million, for Primary Mortgage Banks from N500,000 to N2 million, and for Mobile Money Operators subscribers’ from N500,000 to N5 million per subscriber.

Hassan emphasised that the update aims to bolster depositor safety, public trust, the inclusivity of financial services, and the overall stability of the financial sector.

He stated, “The increase in the maximum deposit insurance coverage levels for all licenced deposit-taking financial institutions with immediate effect.”

DAILY POST recalls that the coverage benchmark was raised from N50,000 to N200,000 in 2006; the coverage limit of N100,000 was also set, for the first time, for MFB and PMB depositors in the same year.

In 2011, the coverage limits for DMBs increased from N200,000 to N500,000 and from N100,000 to N200,000 for depositors of MFBs and PMBs.

Additionally, the coverage level was further adjusted to N500,000 in 2016 for PMB depositors and subscribers of licensed Mobile Money Operators.

Coverage of N500,000 was equally extended to depositors of PSBs in 2020.

Meanwhile, the coverage for DMBs remained at N500,000.

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