In furtherance of its sustained efforts to boost public confidence in the banking system, the Nigeria Deposit Insurance Corporation (NDIC) has assured bank depositors in the country, especially small savers and traders, of the safety of their deposit and their entitlement to a compensation of up to N5 million in the event of a deposit money bank’s (DMB’s) failure.
The corporation’s Head of Communication and Public Affairs, Mrs Hawwau Gambo, gave the assurance on Thursday.at a public awareness campaign held at Wuse Market, Abuja
Gambo spoke on the importance of saving money in banks licensed by the Central Bank of Nigeria (CBN), adding that only those banks insured by the NDIC guarantee deposit protection.
She explained: “We are here today to enhance public awareness about deposit insurance and how the NDIC protects the money of depositors in banks. Our focus is on reaching out to small savers and traders who may not be fully informed about how banking operates, to educate them on the dos and don’ts of banking, particularly how NDIC safeguards their money.
- Advertisement -
“First, we emphasize the importance of saving money in banks that are licensed by the Central Bank of Nigeria (CBN). Only those banks pay premiums to the NDIC, which means their depositors are covered by deposit insurance in the event that a bank fails.
“We let them know that, for commercial banks, depositors can get compensation ranging from N1 up to N5 million, depending on their account balance. For microfinance banks and payment service banks, the coverage is between N1 and N2 million. We hope this information builds their confidence to keep their money safely in banks”, Gambo added.
She, however, warned depositors to be cautious in dealing with banks, MfBs and fintechs by only doing transactions with verified agents to avoid falling prey to loan sharks.
In her brief remarks at the event, a Senior Manager in the Communication and Public Affairs Department of the corporation, Yetunde Alade, explained that the campaign was part of a pilot programme aimed at increasing financial literacy among Nigeria’s most vulnerable savers.
She said: “We are focusing on small savers who may not fully understand how banking works.This awareness campaign teaches them how to save safely, where to save, and how to recover their funds should a bank fail.”
