NDIC Explains Compensation for Failed Bank Depositors

During a budget defense session in Abuja, Oludare Sundai, the Managing Director of the Nigeria Deposit Insurance Corporation (NDIC), discussed the corporation's role in compensating depositors of failed banks. He clarified that NDIC's mandate includes guaranteeing deposits up to ₦5 million for individual depositors and ₦2 million for corporate depositors.

Sundai responded to questions from the House of Representatives committee, particularly from spokesperson Hon. Akin Rotimi Jr., regarding the specifics of depositor compensation.

He explained that NDIC assesses the risk of financial institutions based on premiums received from banks, which are typically between 15% to 16%. He emphasized that the NDIC does not cover all deposits without limits, addressing misconceptions about the corporation's coverage.

The chairman of the committee, Ahm Jaha, commended Sundai for clarifying these points, as many people were under the impression that NDIC covered every deposit without restrictions.