Keypoints
- The Nigeria Deposit Insurance Corporation (NDIC) now provides deposit insurance coverage for more than 281 million depositors.
- Deposit insurance limits were increased in May 2024, with commercial bank coverage rising from N500,000 to N5 million.
- The corporation has paid over N54.93 billion to insured depositors of the defunct Heritage Bank.
- The NDIC says the use of the Bank Verification Number (BVN) has reduced reimbursement timelines from years to days.
- Thirty-two banks met the March 31, 2026 recapitalisation deadline, raising more than N4.61 trillion in fresh capital.
Main Story
The Nigeria Deposit Insurance Corporation (NDIC) says more than 281 million depositors across Nigeria’s banking system are now protected against bank failures following reforms that expanded deposit insurance coverage and accelerated reimbursement to customers of failed financial institutions.
The Managing Director and Chief Executive Officer of the NDIC, Thompson Sunday, disclosed this during the second quarter 2026 Citizens and Stakeholders’ Engagement Session organised by the Federal Ministry of Finance in Abuja.
According to him, the corporation currently provides deposit insurance for customers of 914 licensed financial institutions, including deposit money banks, non-interest banks, microfinance banks, primary mortgage banks and mobile money operators.
Sunday said more than 98 per cent of depositors are now fully covered for their entire account balances following the upward review of deposit insurance limits in May 2024—the first revision since 2016.
Under the revised framework, insurance coverage for customers of deposit money banks increased from N500,000 to N5 million, while customers of microfinance banks, primary mortgage banks and payment service banks are now covered up to N2 million. Mobile money subscribers also enjoy coverage of up to N5 million.
He noted that the revised limits increased full insurance coverage for deposit money bank customers to 98.98 per cent, up from 89.2 per cent before the review. Coverage for customers of microfinance banks, primary mortgage banks and payment service banks also rose to 99.27 per cent, 99.34 per cent and 99.99 per cent, respectively.
The NDIC chief said the corporation has significantly improved reimbursement timelines through the deployment of the Bank Verification Number (BVN) system, reducing the period for insured deposit payouts from several years to a matter of days.
He disclosed that the corporation has paid over N54.93 billion in insured deposits to 698,040 depositors of the defunct Heritage Bank. In 2025 alone, it paid N4.06 billion to 13,446 insured depositors and N33.59 billion to uninsured depositors of failed banks.
Sunday attributed the reforms to the NDIC Act 2023, which strengthened the corporation’s powers to resolve distressed banks, recover assets, protect depositors and prioritise depositors’ claims over those of creditors and shareholders during liquidation.
He added that the NDIC conducted 287 on-site examinations of banks in 2025 and resolved 1,196 of the 1,407 depositor complaints received during the year, while continuing off-site surveillance in collaboration with the Central Bank of Nigeria (CBN).
The corporation also revealed that 32 banks successfully met the March 31, 2026 recapitalisation deadline, collectively raising more than N4.61 trillion in fresh capital with support from the NDIC’s verification processes.
Speaking at the event, the Permanent Secretary of the Federal Ministry of Finance, Raymond Omachi, said the engagement was aimed at promoting transparency, accountability and effective communication between the ministry, its agencies and the Nigerian public.
The Issues
Maintaining public confidence in the banking sector remains critical to financial stability, particularly as financial institutions undergo recapitalisation and regulatory reforms.
Expanding deposit insurance coverage reduces the risk of panic withdrawals during periods of financial uncertainty and provides greater protection for small depositors. However, continued vigilance, effective supervision and timely resolution of distressed institutions remain essential to sustaining confidence in Nigeria’s financial system.
What’s Being Said
NDIC Managing Director and Chief Executive Officer, Thompson Sunday, said the corporation’s recent reforms have significantly strengthened depositor protection across the banking industry.
He said the upward review of insurance coverage has ensured that more than 98 per cent of depositors are fully protected, while the adoption of the Bank Verification Number has shortened reimbursement timelines from years to just a few days.
Permanent Secretary of the Federal Ministry of Finance, Raymond Omachi, said the stakeholders’ engagement underscores the ministry’s commitment to transparency, accountability and keeping citizens informed about the performance of its agencies.
What’s Next
The NDIC is expected to continue implementing the provisions of the NDIC Act 2023, strengthen bank supervision in collaboration with the CBN and enhance depositor protection through faster claims settlement and improved regulatory oversight.
The corporation will also continue monitoring the banking sector following the completion of the latest recapitalisation exercise to ensure the continued stability of Nigeria’s financial system.
Bottom Line
The expansion of deposit insurance coverage, stronger legal safeguards and faster reimbursement mechanisms represent a significant step towards reinforcing confidence in Nigeria’s banking sector and protecting millions of depositors against potential bank failures.
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