Nigeria Deposit Insurance Corporation (NDIC) has said its enhanced deposit insurance limits now provide full coverage for more than 98 per cent of depositors in insured financial institutions, as it urged Nigerians to keep their money only with licensed and regulated operators.
The Managing Director and Chief Executive of the NDIC, Thompson Oludare Sunday, disclosed this on Wednesday while delivering a keynote address at the Corporation’s Special Day during the 21st Abuja International Trade Fair.
Sunday said the increase in deposit insurance coverage, introduced in 2024, was designed to strengthen confidence in Nigeria’s banking system and protect households, small businesses and other vulnerable depositors from the immediate effects of bank failure.
Under the revised limits, deposits of up to ₦5 million per depositor are insured in each Deposit Money Bank and Mobile Money Operator. The maximum insured amount is ₦2 million per depositor in Microfinance Banks, Primary Mortgage Banks and Payment Service Banks.
He said depositors whose balances exceed the insured limits would continue to receive liquidation dividends from recoveries made through the collection of debts owed to failed institutions and the sale of their physical assets.
“Our objective is straightforward: no depositor should lose confidence in the banking system merely because an insured institution has failed,” Sunday said.
Faster reimbursement through technology
The NDIC chief said the Corporation had also transformed the process for reimbursing depositors of failed banks. By using the Bank Verification Number (BVN), the Single Customer View framework, NIBSS infrastructure and other digital tools, the Corporation has moved away from cumbersome manual procedures.
According to him, verified depositors of failed banks can now receive their insured deposits within days of a bank’s closure. Depositors are no longer required to routinely visit the premises of failed banks or NDIC offices for physical verification, or to transport large volumes of documents between locations.
Sunday urged depositors to help speed up the process by ensuring that their account information is accurate and consistent across banks and properly linked to their BVNs.
The NDIC, he said, was evolving beyond its traditional role of paying claims after a bank failure. It was positioning itself as a “Risk Minimizer” that identifies vulnerabilities early, strengthens safeguards and helps prevent institutional problems from becoming systemic crises.
Stronger supervision and resolution systems
The Corporation’s institutional reforms include the deployment of Risk-Based
Supervision, an enhanced Differential Premium Assessment System, the Single Customer View framework, a distress- resolution suite and the Bank Liquidation Management System.
Sunday also highlighted stronger collaboration with the Central Bank of Nigeria and other institutions within the country’s financial safety-net architecture.
These measures, he said, were intended to keep the banking system safe, sound and resilient while supporting businesses that depend on banks to safeguard working capital, facilitate payments and provide credit for investment and expansion.
The NDIC’s role, he added, was directly connected to the resilience of the wider economy, particularly as the country pursues the Federal Government’s vision of building a $1 trillion economy by 2030.
Warning over unregulated schemes
The NDIC boss cautioned Nigerians against keeping substantial funds outside the formal financial system or handing their savings to unlicensed fund managers who promise extraordinary returns.
He said the repeated proliferation and collapse of Ponzi schemes had exposed Nigerians to severe financial and emotional losses. Members of the public, he advised, should pause, ask questions and verify investment opportunities before committing their money.
“If an investment promise sounds too good to be true, Nigerians should pause, ask questions and verify before committing their money,” he said.
Sunday said financial literacy remained the first line of defence for depositors and business owners, stressing that technology and regulation alone could not guarantee financial security.
He encouraged the public and businesses to strengthen their financial knowledge, use digital financial services responsibly, maintain sound financial practices and seek guidance from relevant regulatory institutions when necessary.
NDIC unveils upgraded digital gateway
The Corporation also used the occasion to promote its upgraded website, launched on September 19, 2026, as part of efforts to make depositor protection more accessible and transparent.
The website, www.ndic.gov.ng, provides information on the enhanced insurance limits, automated claims-processing features and a directory for checking whether financial institutions are insured by the NDIC.
It also includes a Quick Action Bar giving users direct access to four services: File Claim, Check Banks, Report Failed Bank and FAQs. An artificial-intelligence- powered virtual assistant has been added to help users navigate platform and obtain information more quickly.
Sunday described the upgrade as more than a routine website redesign, calling it another step towards a more responsive and technology-driven NDIC. He urged depositors, creditors and shareholders of closed banks to use the Corporation’s digital platforms when processing claims.
The address was delivered at the Abuja International Trade Fair, whose theme this year is “Resilience: Trade, Taxation and the Economy.”
Sunday commended the Abuja Chamber of Commerce, Industry, Mines and Agriculture for sustaining the fair for 21 consecutive years and said its theme reflected the challenges and opportunities created by Nigeria’s ongoing economic reforms.
He also invited visitors to the NDIC Pavilion at the fair to obtain information on deposit insurance, depositor protection, claims processing and financial literacy.