NDIC Urges Nigerians To Move More Funds Into Banks As Deposit Cover Rises To N5m

The Nigeria Deposit Insurance Corporation (NDIC) has urged Nigerians to move more of their funds into the formal banking system, assuring depositors that the increase in deposit insurance coverage from N500,000 to N5 million has significantly strengthened the protection available to customers of deposit money banks.

The Corporation said the revised insurance limit, which now fully covers 98.98 per cent of depositors in Nigerian deposit money banks, was aimed at deepening public confidence in the banking system and encouraging greater participation in the formal financial sector.

The Assistant Director, Communication and Public Affairs Department of the NDIC, Mr Adegbenga Fabuyi, made the call on Saturday at the 2026 Finance Correspondents Association of Nigeria (FICAN) Conference and 36th Anniversary held in Lagos.

Fabuyi said the enhanced deposit insurance coverage was particularly important as Nigeria implements banking sector reforms, including the ongoing recapitalisation exercise designed to strengthen the capacity and resilience of banks.

According to him, a resilient banking system cannot be achieved without public confidence, stressing that the NDIC’s deposit insurance mandate remained central to protecting depositors and sustaining confidence in the financial system.

“The recapitalisation is aimed at providing Nigeria with a resilient banking system, especially one that supports the $1 trillion economy of the Federal Government and there cannot be a resilient banking system without building confidence in the system. This is where the NDIC comes in,” he said.

Recapitalisation Not a Substitute for Deposits

Fabuyi also clarified a common misconception about the banking sector recapitalisation exercise, explaining that the fresh capital injected into banks should not be regarded as money that would automatically be available for lending to customers.

He explained that banks would continue to depend largely on deposits mobilised from customers to support their lending and credit activities.

“The recapitalisation means that it is not the capital base that the banks will give as loan, as credit; it is the money deposited in the banks by the depositors. So, we still need more people to bring their money into the banking system,” he said.