NDIC expands grassroots engagement to boost depositor confidence and clarify coverage of deposit insurance across Nigeria’s banking system

Nigeria Deposit Insurance Corporation has announced an expanded programme of grassroots stakeholder engagement to reinforce trust in Nigeria’s banking system and strengthen depositor confidence.

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The announcement was made during the NDIC Stakeholders’ Town Hall Meeting in Lagos on Saturday, attended by representatives from the Central Bank of Nigeria, financial institutions, trade associations, civil society organisations, academia, youth and women groups, and the media.

Speaking at the event, NDIC Managing Director and Chief Executive, Sunday Thomson, represented by the Director of the Bank Examination Department, Adeyinka Olukoya, highlighted the need to address misconceptions about the deposit insurance system (DIS).

“Some members of the public are unsure about what is covered and what steps to take when a bank is closed, or how depositors are reimbursed after revocation of a banking licence. This forum provides the opportunity to clarify these issues and empower depositors with knowledge of how their funds are protected,” he said.

NDIC’s strengthened protection framework now insures depositors of deposit money banks, mobile money operators, and non-interest banks up to N5 million, while depositors of microfinance banks, primary mortgage institutions, and payment service banks are covered up to N2 million.

In the event of a bank failure, insured sums are paid promptly, with excess balances paid as liquidation dividends, protecting nearly 99 per cent of depositors in Nigeria.

Director of the Asset Management Department, Patricia Okosun, said the town hall, themed “Strengthening Depositors’ Confidence in NDIC’s Role in Financial System Stability and Consumer Protection,” provides a direct and interactive platform for clarifying misconceptions and educating the public about the corporation’s role.

Head of Communications and Public Affairs, Hawwau Gambo, noted that recent developments in the banking sector, including revocations of bank licences and NDIC payouts, underscored the importance of sustained stakeholder engagement.

Presentations focused on depositor protection, customer responsibilities, financial prudence, and evaluation tools to assess awareness and measure programme impact.

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The initiative forms part of NDIC’s broader effort to build trust, enhance transparency, and strengthen confidence in Nigeria’s financial system through proactive engagement with diverse stakeholders.