The Nigeria Deposit Insurance Corporation (NDIC) has urged Nigerians to move more of their funds into the formal banking system, citing the increase in deposit insurance coverage from N500,000 to N5 million. This move has significantly strengthened protection for depositors and is expected to deepen confidence in the banking sector. According to the NDIC, the revised insurance limit now provides full coverage for 98.98 per cent of depositors in Nigerian deposit money banks.
The NDIC's call was made at the 2026 Finance Correspondents Association of Nigeria (FICAN) Conference and 36th Anniversary held in Lagos. Hauwa Gambo, Head of Communication and Public Affairs Department at the NDIC, was represented by Adegbenga Fabuyi, Assistant Director, Communication and Public Affairs Department of the NDIC. Gambo emphasized that the strengthened deposit insurance framework was designed to protect depositors and reinforce public confidence in regulated financial institutions.
The NDIC official also sought to correct a misconception about the ongoing banking sector recapitalisation, stressing that fresh capital injected into banks should not be interpreted as funds that would automatically be available for lending to customers. Rather, deposit mobilisation would remain central to banks' lending activities. This clarification places renewed emphasis on the ability of banks to attract and retain deposits as the industry adjusts to higher capital requirements.
Gambo called for stronger public enlightenment by banks, regulators, and the media to persuade Nigerians who still keep substantial amounts of money outside the formal financial system to bring such funds into regulated institutions. She expressed concern that some Nigerians continue to keep large amounts of cash in homes, rooftops, farms, and other informal locations, exposing such funds to risks ranging from theft and fire to permanent loss.
The increase in the maximum insured deposit from N500,000 to N5 million substantially expands the proportion of depositors whose funds are fully protected under the NDIC framework. With 98.98 per cent of depositors now fully covered, the Corporation believes the enhanced limit can serve as an important confidence-building measure as Nigeria seeks to deepen financial inclusion and increase the pool of funds available within the formal economy.
The NDIC also highlighted its role in Nigeria's rapidly expanding fintech and digital financial services ecosystem. The Corporation is supporting the growth of technology-driven financial services by providing deposit insurance protection for eligible deposit-taking institutions operating within the regulated financial system. This includes mobile money operators and fintech-enabled microfinance banks.
The NDIC stressed the importance of the media in sustaining public understanding and confidence as the banking industry undergoes significant changes. The Corporation congratulated FICAN on its 36th anniversary and commended the association for its longstanding contribution to financial journalism and public understanding of developments in the banking sector.
Key points
- The Nigeria Deposit Insurance Corporation (NDIC) has increased deposit insurance coverage from N500,000 to N5 million, providing full coverage for 98.98 per cent of depositors in Nigerian deposit money banks.
