Legal Nigeria

NDIC raises deposit insurance coverage level for banks, others

The Nigeria Deposit Insurance Corporation (NDIC) says it has increased the levels of  deposit insurance coverage for all banks and other  licensed deposit-taking financial institutions.

NDIC Managing Director/Chief Executive Bello Hassan at a  briefing in Abuja, said the increment affected Deposit Money Banks (DMBs), Microfinance Banks (MFBs), Primary Mortgage Banks (PMBs), Payment Service Banks (PSBs) and Mobile Money Operators (MMOs).

With the new development,  Deposit Money Banks (DMBs) coverage has increased from N500,000 to N5,000,000 with full coverage for 98.98 percent of depositors as against the previous 89.20 percent.

The coverage for Microfinance Banks (MFBs) coverage has jumped  from N200,000 to N2,000,000, with an offering of full coverage for 99.27 percent of depositors.

For Primary Mortgage Banks (PMBs),  coverage increased  from N500,000 to N2,000,000 while  that of Payment Service Banks (PSBs) coverage has been increased from N500,000 to N2,000,000.

For Mobile Money Operators (MMOs), the maximum Pass-through deposit insurance coverage is now N5,000,000 per subscriber per MMO.

Hassan said: “By increasing deposit insurance coverage, we are ensuring that depositors are better protected in the unlikely event of a bank failure.”

Source: PM News