NDIC Confirms N2m to N5m Guarantees for Failed Bank Depositors

The Nigeria Deposit Insurance Corporation (NDIC) announced that depositors and customers of failed banks received guaranteed payments ranging from N2 million to N5 million. Mr. Thompson Sundai, the Managing Director of NDIC, provided this information during a budget defense session on Thursday, addressing questions from the House of Representatives Committee on Insurance.

He cited the recent case of the defunct Heritage Bank, whose license was revoked on June 3, 2024. Sundai explained that the NDIC guarantees deposits based on the type of financial institution, with N5 million for commercial banks and N2 million for microfinance banks.

He emphasized that the NDIC does not cover all deposits, clarifying that the recent increase in coverage to N5 million per depositor was misunderstood by some. As of January 6, NDIC paid a second tranche of liquid dividends amounting to N24.63 billion to Heritage Bank depositors, stressing the importance of asset realization in the liquidation process.