The Nigeria Deposit Insurance Corporation (NDIC) has warned Nigerians of the dangers of patronising banks, fintechs, and other financial institutions not licensed by the Central Bank of Nigeria (CBN).
Managing Director, Dr. Oludare Sunday, made the call in Abuja during the NDIC Special Day at the ongoing 20th Abuja International Trade Fair.
He was represented by Mrs. Olabimpe Akande, Director of Performance Management. He stressed NDIC’s role for over three decades in protecting depositors’ funds and stabilising the banking system.
Sunday advised Nigerians to be cautious with their savings. “Always ensure your funds are placed only in Central Bank of Nigeria licensed banks, all of which are covered by deposit insurance provided by the NDIC,” he said.
He cautioned against Ponzi schemes and fake investment platforms. “This vigilance is crucial to protecting your hard-earned savings,” he added.
The NDIC chief explained that the corporation insures depositors of Deposit Money Banks (DMBs), Mobile Money Operators and Non-Interest Banks up to ₦5 million.
Customers of Payment Service Banks, Microfinance Banks, and Primary Mortgage Banks are insured up to ₦2 million.
He noted that this enhanced coverage protects over 98% of customers across Nigeria’s banking system, reflecting NDIC’s commitment to its mandate.
Heritage Bank Case Study
To illustrate how NDIC operates, Sunday cited the case of Heritage Bank, whose license was revoked on June 3, 2024.
He explained: “Depositors with sums exceeding ₦5 million were first paid ₦5 million, with liquidation dividends disbursed subsequently from recovered assets and debts.”
The first tranche of these dividends was paid on April 25, 2025, and more payments continue. According to him, liquidation dividends are payouts made to depositors and creditors from the proceeds of selling a failed bank’s assets.
“This approach demonstrates NDIC’s effectiveness in ensuring comprehensive depositor protection and financial stability,” Sunday said, adding that it helps maintain confidence in the financial system.
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