The Nigeria Deposit Insurance Corporation (NDIC) has increased maximum deposit insurance coverage of Deposit Money Banks (DMBs) and Mobile Money Operators (MMOs) by 900 percent to N5 million from N500,000, while those of Primary Mortgage Banks (PMBs), Payment Service Banks (PSBs) were increased by 300 percent to N2 million from N500,000.

Mr Bello Hassan, the Managing Director of NDIC, revealed this at a press conference on Thursday in Abuja, saying that the maximum deposit insurance for Microfinance Banks (MfBs) has now increased to N2 million, 900 percent up from N200,000.

Hassan said NDIC has a war chest of deposit fund in excess of N2 trillion with which to implement the policy, meant to boost depositors’ confidence and stability of the nation’s banking system.

He said that the decision to raise the coverage levels was taken by the Interim Management Committee of the corporation during its 18th meeting held last week, following a 2023 study of the organisation, to determine the adequacy of the maximum deposit insurance coverage in the country.

His words: “NDIC’s Interim Management Committee (IMC), during its 18th meeting held on April 24 and 25 approved an increase in the maximum deposit insurance coverage levels for all licensed deposit-taking financial institutions with immediate effect. The adjustments are as follows: DMBs – The increase of the maximum deposit insurance coverage from N500,000 to N5 million, would provide full coverage of 98.98% of the total depositors compared with the current cover of 89.20%.

“In terms of the value of deposit covered, the revised coverage would increase the value of deposits covered by deposit insurance to 25.37% compared with the current cover of 6.31% of total value of deposits.