The Nigerian Deposit Insurance Corporation NDIC has increased the maximum coverage of all deposit-taking financial institutions across all levels.
Managing director of the NDIC, Hassan Bello, who made this announcement in Abuja, said the coverage has increased the maximum deposit insurance coverage of Deposit Money Banks DMBs from N500, 000 to N5million, which would provide full coverage of 98.98 per cent of the total depositors compared with the current cover of 89.20 per cent.
Bello said in terms of the value of deposit covered, the revised coverage would increase the value of deposits covered by deposit insurance to 25.37 per cent compared with the current cover of 6.31 per cent of total value of deposits.
The NDIC, boss therefore advised depositors to patronize only deposit financial institutions licensed by the Central Bank of Nigeria, CBN.
While urging depositors not to be deceived by mouthwatering interest rates presented by some non-licensed deposit financial institutions.
According to him, depositors could only sue or report issues between them and licensed deposit financial institutions to the CBN and the NDIC in the event of any dissatisfaction.
He said the list of licensed deposit-taking financial institutions was at the CBN and NDIC’s websites.
Hassan further stated that the NDIC would only pay maximum deposit insurance to depositors of the licensed institutions.
