September 27, (THEWILL) – 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 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.
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He therefore called for intensified efforts by banks, regulators and the media to educate Nigerians on the importance of keeping their money within regulated financial institutions.
According to him, the increased insurance limit provides an additional incentive for Nigerians who may still be reluctant to keep substantial amounts of money in banks because of concerns about the safety of their deposits.
Fabuyi expressed concern that some Nigerians continue to keep large amounts of cash in homes, rooftops, farms and other informal locations, exposing such funds to risks including theft, fire and permanent loss.
He stressed that money kept within insured financial institutions enjoys a level of protection that cannot be guaranteed when cash is kept outside the formal financial system.
NDIC Backs Fintech Expansion
The NDIC official also highlighted the Corporation’s role in the growing fintech ecosystem, saying the Corporation was supporting the expansion of digital financial services through deposit insurance coverage for eligible deposit-taking institutions operating within the regulated financial system.
He specifically identified mobile money operators and fintech-enabled microfinance banks among institutions whose eligible deposit-taking activities benefit from the Corporation’s deposit insurance framework.
Fabuyi said extending deposit protection to eligible digital financial service providers was important in building confidence among Nigerians who increasingly use technology-driven platforms for savings, payments and other financial transactions.
“The NDIC is also strongly supporting that to encourage people to bring their money into that sector also,” he said.
He explained that the Corporation’s involvement in both conventional banking and the expanding digital finance ecosystem was part of broader efforts to promote financial stability and build a more resilient Nigerian financial system.
Media Critical to Banking Reforms
Fabuyi also commended FICAN for its longstanding relationship with the NDIC and its role in reporting developments in the financial sector.
Speaking on behalf of the NDIC Managing Director/Chief Executive Officer, Mr Thompson Oludare Sunday, he congratulated FICAN on its 36th anniversary and acknowledged the association’s contribution to financial journalism and public understanding of developments in the banking industry.
He said the media remained a critical partner in communicating the benefits of deposit insurance, banking reforms and developments in the fintech sector to the wider Nigerian public.
Fabuyi urged financial correspondents to intensify public enlightenment on the revised deposit insurance limit and the protection available to depositors across the regulated financial system.
He said stronger collaboration between the NDIC and financial journalists would help Nigerians better understand ongoing banking reforms, appreciate the safeguards available to depositors and make informed decisions about participating in the formal financial system.
The NDIC official maintained that greater public confidence, increased deposit mobilisation and effective regulation would remain important components of efforts to build a stronger financial system capable of supporting Nigeria’s broader economic ambitions.
