The Nigeria Deposit Insurance Corporation (NDIC) has announced an increase in the deposit insurance coverage for all licensed deposit-taking financial institutions.
Deposit insurance coverage guarantees that an account holder’s money at a financial institution is safe up to a certain amount.
If a financial institution fails or goes bankrupt, this coverage ensures that depositors will be reimbursed.
Announcing the changes, Bello Hassan, the NDIC Managing Director/Chief Executive, informed journalists in Abuja on Thursday, April 5, 2024, that the changes apply to Deposit Money Banks (DMBs), Microfinance Banks (MFBs), Primary Mortgage Banks (PMBs), Payment Service Banks (PSBs), and Mobile Money Operators (MMOs).
He explained that the increase ensured that depositors are better protected in the unlikely event of a bank failure.
Hassan also stressed that the increased deposit insurance coverage levels will take effect immediately, offering Nigerians greater peace of mind when saving their money with licensed financial institutions, Punch reports.
He added:
Earlier, TimesNow.com.ng revealed that the directors of 183 failed microfinance banks and Primary Mortgage Banks would soon face investigation over their roles in the failed institutions.
The managing director/chief executive officer of NDIC, Bello Hassan, disclosed this during a workshop organised by the corporation for security and law enforcement agencies in Lagos.
Vanguard reports that Hassan said the corporation would soon approach security agencies to investigate some of the failed banks’ directors and bosses, bringing them to justice and holding them accountable for their collapse.
Source: TimesNow.com.ng
