NDIC Says 281 Million Depositors Protected Against Bank Failures

The Nigeria Deposit Insurance Corporation (NDIC) has disclosed that more than 281 million depositors across the country’s banking system are insured against bank failures following reforms that expanded deposit coverage and accelerated compensation for customers of failed financial institutions.

Managing Director and Chief Executive Officer of the corporation, Thompson Sunday, made the disclosure 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 insurance coverage for deposits in 914 licensed financial institutions, including Deposit Money Banks, Non-Interest Banks, Microfinance Banks, Primary Mortgage Banks and Mobile Money Operators.

He stated that over 98 per cent of depositors are now fully protected for their entire balances following the upward review of the Maximum Deposit Insurance Coverage in May 2024.

A presentation by the NDIC showed that the insurance threshold for customers of Deposit Money Banks increased from N500,000 to N5 million, while coverage for depositors in Microfinance Banks, Primary Mortgage Banks and Payment Service Banks rose to N2 million. Mobile money subscribers are also covered up to N5 million.

The reforms, according to the corporation, increased the percentage of fully insured customers of Deposit Money Banks from 89.2 per cent to 98.98 per cent. Coverage for Microfinance Banks, Primary Mortgage Banks and Payment Service Banks also rose to 99.27 per cent, 99.34 per cent and 99.99 per cent respectively.

Sunday attributed improvements in depositor reimbursement timelines to technological innovations, particularly the use of the Bank Verification Number (BVN), which has reduced payment periods from several years to a matter of days.

He revealed that the corporation has paid over N54.93 billion in insured deposits to 698,040 customers of the defunct Heritage Bank.

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

He noted that the reforms have been strengthened by the NDIC Act 2023, which replaced the 2006 legislation and expanded the corporation’s powers to resolve distressed banks, recover assets and safeguard depositors.

Under the new law, depositors now enjoy priority over creditors and shareholders during liquidation proceedings, while the Deposit Insurance Fund and asset recovery mechanisms have also been strengthened.

The corporation also reported conducting 287 on-site bank examinations in 2025 and resolving 1,196 out of 1,407 depositor complaints received during the year. It added that off-site surveillance activities continue in partnership with the Central Bank of Nigeria as part of an early warning framework for financial stability.

According to the NDIC, 32 banks successfully met the March 31, 2026 recapitalisation deadline after raising more than N4.61 trillion in fresh capital, with the corporation supporting the process through capital verification and monitoring.

Speaking at the event, Permanent Secretary of the Federal Ministry of Finance, Raymond Omachi, said the engagement reflected the ministry’s commitment to transparency, accountability and effective communication with citizens and stakeholders.

He noted that the NDIC remains a critical component of Nigeria’s financial safety net by protecting depositors, strengthening public confidence in the banking system and promoting overall financial sector stability.