NDIC Encourages Increased Bank Deposits with N5m Coverage

The Nigeria Deposit Insurance Corporation (NDIC) has called on Nigerians to increase their deposits in the formal banking system, following a significant rise in deposit insurance coverage from N500,000 to N5 million. This increase is designed to strengthen the protection for customers of deposit money banks and now fully covers 98.98% of depositors.

Mr. Adegbenga Fabuyi, the Assistant Director of the Communication and Public Affairs Department of the NDIC, made this announcement during the 2026 Finance Correspondents Association of Nigeria (FICAN) Conference and 36th Anniversary held in Lagos. Fabuyi emphasized that the enhanced insurance coverage is crucial as Nigeria undergoes banking sector reforms, including a recapitalisation exercise aimed at bolstering banks' capacity and resilience.

He clarified that the recapitalisation does not mean that the new capital will be available for lending; rather, banks will continue to rely on customer deposits for their lending activities.