NDIC Says 281 Million Depositors Protected Against Bank Failure Following Expanded Insurance Coverage

The Nigeria Deposit Insurance Corporation (NDIC) 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. NDIC Managing Director and CEO, Thompson, said this during the second quarter 2026 Citizens and Stakeholders’ Engagement Session organised by the Federal Ministry of Finance.

According to Sunday, the corporation currently provides deposit insurance coverage across 914 licensed financial institutions, while over 98 percent of depositors are fully insured following the upward review of deposit insurance limits in May 2024. Under the revised framework, insurance coverage for depositors in Deposit Money Banks increased from N500,000 to N5 million, while customers of Microfinance Banks, Primary Mortgage Banks, and Payment Service Banks now enjoy insurance cover of up to N2 million, and mobile money subscribers are also covered up to N5 million. 

Sunday 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, and the corporation has so far paid more than N54.93 billion in insured deposits to Heritage Bank customers, reaching 698,040 depositors. 

He also disclosed that in 2025 alone, the NDIC paid N4.06 billion to 13,446 insured depositors and N33.59 billion to uninsured depositors of failed banks. 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, and continued off-site surveillance in collaboration with the Central Bank of Nigeria.

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