NDIC Increases Max Deposit Insurance Coverage to N5m From N500k

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The maximum deposit insurance coverage levels for Deposit Money Banks were raised by the Nigeria Deposit Insurance Corporation (NDIC) on Thursday from N500,000 to N5 million.

At a news conference in Abuja, NDIC Managing Director Bello Hassan declared this to be effective immediately.

According to him, Deposit Money Banks will fully cover 98.98% of all depositors with the rise in the maximum deposit insurance coverage from N500,000 to N5,000,000, as opposed to the current coverage of 89.20%. Compared to the present cover of 6.31% of the total value of deposits, the enhanced coverage would boost the value of deposits covered by deposit insurance to 25.37%.

The maximum deposit insurance coverage would increase from N200,000 to N2,000,000, providing full coverage for 99.27% of all depositors compared with the current level of 98.76% and the value of deposits covered by deposit insurance would increase to 34.43% from 14.38% of the total value of deposits currently covered.

If the maximum deposit insurance coverage is raised from N500,000 to N2,000,000, 99.34% of all depositors would be fully covered, up from the current 97.98%, and the value of deposits covered by deposit insurance would rise to 21.04%, up from the 10.77% of the total value of deposits currently covered.

Additionally, Hassan said that increasing the maximum deposit insurance coverage for primary mortgage banks from N500,000 to N2,000,000 would cover all depositors, or 99.99% of them, and increase the value of deposits covered by deposit insurance from the current 40.60% cover to 43.10% of the total deposit value.

The Corporation also increased the maximum pass-through deposit insurance coverage for each Mobile Money Operator subscriber from N500,000 to N5,000,000.

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