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…Company says over 98% of depositors are fully covered as insured limit rises to ₦5 million
Daud Olatunji
The Nigeria Deposit Insurance Corporation has warned Nigerians against holding large funds with unlicensed financial operators and Ponzi schemes, warning that promises of extraordinary returns could expose depositors to devastating financial losses.
The Managing Director/Chief Executive Officer of the NDIC, Thompson Oludare Sunday, made the warning on Wednesday while delivering the keynote address at the company’s special day during the 21st Abuja International Trade Fair organized by the Abuja Chamber of Commerce, Industry, Mines and Agriculture.
Sunday urged Nigerians to keep their money with licensed and regulated financial institutions and check out investment opportunities before committing their funds.
According to him, the proliferation and collapse of Ponzi schemes have repeatedly demonstrated the financial and emotional consequences of pumping hard-earned money into unregulated investment platforms.
“There are still Nigerians who keep large funds outside the formal banking system or entrust their savings to unlicensed fund managers, lured by promises of extraordinary and unrealistic returns,” he said.
He added: “If an investment promise seems too good to be true, Nigerians should stop, ask questions and verify before committing their money.”
The NDIC boss said the Corporation continued to strengthen Nigeria’s financial safety net architecture to ensure the banking system remained safe, sound and resilient.
He explained that the mandate of the NDIC covers deposit insurance, banking supervision in collaboration with the Central Bank of Nigeria, bankruptcy resolution and bank liquidation.
Sunday said the Corporation has enhanced its deposit insurance coverage in 2024 by increasing the maximum insured limit to ₦5 million per depositor for Deposit Money Bank and Mobile Money Operator.
It added that the insured limit has been increased to ₦2 million per depositor for microfinance banks, primary mortgage banks and payment services banks.
According to him, the strengthened limits provide comprehensive coverage for more than 98% of depositors among insured institutions, thus offering protection to families, small businesses and other vulnerable depositors in the event of a bank failure.
He, however, explained that depositors whose balances exceed the insured limits could still receive liquidation dividends from recoveries made from debts owed to failed institutions and from the disposal of their tangible assets.
Sunday said the Corporation is also transforming the process of repaying depositors of failed banks through the deployment of technology.
He listed bank verification number, unique customer view, Nigeria Interbank Settlement System infrastructure and other digital solutions among the technologies used to speed up refunds.
It said verified depositors of failed banks could now receive their insured deposits within days of a bank’s closure, compared to cumbersome manual processes associated with claims processing in the past.
The NDIC chief executive said the Corporation is moving beyond its traditional role of paying depositors after bank failures to become a “risk minimizer” that can identify vulnerabilities early and prevent institutional problems from turning into systemic crises.
He said the Company has strengthened its institutional framework through initiatives including risk-based supervision, an improved differential premium assessment system, the single customer display framework, a distress resolution suite and the bank settlement management system.
He added that stronger collaboration with the CBN and other members of the financial safety net architecture has also become central to the Corporation’s efforts to maintain financial stability.
New website
The NDIC boss also announced the launch of an updated corporate website, designed to improve access to depositor protection services.
It said the new website, launched on September 19, 2026, provides a digital gateway for depositors and other interested parties, with features that include automated claims processing tools and an updated directory for vetting NDIC-insured institutions.
According to him, the platform also has a quick action bar that provides direct access to four services: filing complaints, checking banks, reporting failed banks and access to frequently asked questions.
He said an AI-based virtual assistant has also been incorporated to improve interaction with users and provide faster access to information.
“This is more than a website update. It is another step in our journey towards a more accessible, responsive and technology-driven NDIC,” Sunday said.
He called on depositors, creditors and shareholders of closed banks to make greater use of the Company’s digital platforms in processing their loans.
It also advised depositors to ensure their banking information was accurate and consistent across financial institutions and properly linked to their BVNs to facilitate faster repayments.
Sunday said depositors will no longer have to endure unnecessary visits to failed bank branches or NDIC offices for routine physical verification or carry large volumes of documents from one location to another.
Financial literacy is key to protection
The NDIC CEO stressed that technology and regulation alone cannot ensure financial security, describing financial literacy as the first line of defense for depositors and entrepreneurs.
He urged Nigerians and businesses to improve their knowledge of financial services, use digital financial services responsibly, maintain sound financial practices and seek assistance from relevant regulatory institutions when necessary.
“The more informed the public becomes, the stronger our collective ability to build a resilient financial system,” he said.
Sunday said the NDIC’s participation in the Abuja International Trade Fair was aimed at deepening public understanding of deposit insurance, depositor protection, claims processing and financial literacy.
He also congratulated the Abuja Chamber of Commerce, Industry, Mines and Agriculture for supporting the expo for 21 consecutive years.
The event was held under the theme “Resilience: Trade, Taxation and the Economy”, which the NDIC boss described as timely in view of ongoing economic reforms and the federal government’s ambition to build a $1 trillion economy by 2030.
He said a resilient financial system remains essential for businesses because companies need safe channels to safeguard working capital, make payments and access credit for investment and expansion.
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