The Nigeria Deposit Insurance Corporation (NDIC) has revealed that its coverage extends to only a quarter of the total value of customers’ deposits. While the corporation insures 98% of depositors, the majority of these account holders have relatively small deposits of five million naira or less. In fact, a mere 1.02% of depositors control a staggering 74% of the total deposit value.

The NDIC recently announced an upward review of the maximum deposit insurance coverage for various categories of deposit-taking financial institutions. This move aims to enhance confidence among depositors and promote stability in the banking system. However, the corporation’s managing director emphasized that the limited coverage is deliberate, as it encourages market discipline and mitigates the risk of moral hazard.

The judiciary has been urged to collaborate with the NDIC in addressing issues related to failed banks and debt recovery. The corporation seeks improved synergy among stakeholders to ensure quick and effective resolution of matters related to banking and finance.