The Nigeria Deposit Insurance Corporation (NDIC) has increased deposit insurance coverage for all licensed deposit-taking financial institutions.
Bello Hassan, NDIC managing director and chief executive
officer (CEO), announced this at a press briefing in Abuja on Thursday.
Deposit insurance protects depositors’ funds in the event of
a bank failure.
This coverage ensures that depositors are reimbursed to a
certain limit for their deposits in the failed bank.
Hassan said the increment applies to deposit money banks
(DMBs), microfinance banks (MFBs), primary mortgage banks (PMBs), payment
service banks (PSBs), and mobile money operators (MMOs).
He said the deposit insurance coverage for DMBs was
increased from N500,000 to N5 million.
According to the CEO, the revised coverage would increase
the value of DMB deposits covered by the insurance from 6.31 percent to 25.37
percent of the total value of depositors’ funds.
“By increasing
deposit insurance coverage, we are ensuring that depositors are better
protected in the unlikely event of a bank failure,” he said.
He said the increase provides coverage for 98.98 percent of
DMB depositors — compared to the previous 89.20 percent.
“MFBs coverage has risen from N200,000 to N2 million,
offering full coverage for 99.27 percent of depositors (up from 98.76 percent)
and significantly increasing the value of covered deposits (from 14.38 percent
to 34.43 percent of total deposits),” Hassan said.
“For PMBs, the maximum coverage has been raised from
N500,000 to N2 million, ensuring full coverage for 99.34 percent of depositors
(up from 97.98 percent) and boosting the value of covered deposits (from 10.77
percent to 21.04 percent of total deposits).”
Also, Hassan said PSB coverage has been increased from
N500,000 to N2,000,000, providing 99.99 percent protection for depositors and
raising the value of covered deposits to 43.10 percent of the total (from 40.60
percent).
He said the maximum pass-through deposit insurance coverage
for MMOs has been raised to N5 million per subscriber per MMO, aligning it with
the coverage level for DMBs.
Advertise on NigerianEye.com to reach thousands of our daily users
No comments
Post a Comment
Kindly drop a comment below.
(Comments are moderated. Clean comments will be approved immediately)
Advert Enquires - Reach out to us at NigerianEye@gmail.com