- The Nigeria Deposit Insurance Corporation has introduced a new minimum bank account balance requirement for customers to qualify for insurance
- The insurance gives a customer the right to receive back a percentage of their sum in case of a bank failure
- Customers whose bank accounts do not meet the specified minimum balance will not receive a refund
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Nigeria Deposit Insurance Corporation (NDIC) has announced an increase in the deposit insurance coverage for all licensed deposit-taking financial institutions.
Deposit insurance coverage guarantees that an account holder’s money at a financial institution is safe up to a certain amount.
Photo credit: Benson Ibeabuchi
Source: Getty Images
If a financial institution fails or goes bankrupt, this coverage ensures that depositors will be reimbursed.
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New bank deposit minimum requirement
Announcing the changes, Bello Hassan, the NDIC Managing Director/Chief Executive, informed journalists in Abuja on Thursday, April 5, 2024, that the changes apply to Deposit Money Banks (DMBs), Microfinance Banks (MFBs), Primary Mortgage Banks (PMBs), Payment Service Banks (PSBs), and Mobile Money Operators (MMOs).
He explained that the increase ensured that depositors are better protected in the unlikely event of a bank failure.
Hassan also stressed that the increased deposit insurance coverage levels will take effect immediately, offering Nigerians greater peace of mind when saving their money with licensed financial institutions, Punch reports.
He added:
“The move is expected to strengthen the banking system and encourage further financial inclusion within the country.”
Here is a breakdown of the changes
| Type of financial institution | Previous deposit minimum | New deposit minimum | %amount for customers in case of failure |
| Deposit Money Banks (DMBs) | N500,000 | N5,000,000 | 98.98% |
| Microfinance Banks (MFBs) | N200,000 | N2,000,000 | 99.27% |
| Primary Mortgage Banks (PMBs) | N500,000 | N2,000,000 | 99.34% |
| Payment Service Banks (PSBs) | N500,000 | N2,000,000 | 99.99% |
| Mobile Money Operators (MMOs) | N5,000,000 | 98.98% |
Full list of failed microfinance banks
Earlier, Legit.ng revealed that the directors of 183 failed microfinance banks and Primary Mortgage Banks would soon face investigation over their roles in the failed institutions.
The managing director/chief executive officer of NDIC, Bello Hassan, disclosed this during a workshop organised by the corporation for security and law enforcement agencies in Lagos.
Vanguard reports that Hassan said the corporation would soon approach security agencies to investigate some of the failed banks’ directors and bosses, bringing them to justice and holding them accountable for their collapse.
Source: Legit.ng
