n a bid to ensure coverage of over 90 per cent of depositors in the banking sub sector, Nigeria Deposit Insurance Corporation (NDIC) is set for an upward review of the deposit insured limit for depositors of PMBs to N500,000.
This was disclosed yesterday by the the Managing Director/ CEO Nigeria Deposit Insurance Corporation (NDIC), Alhaji Umaru Ibrahim while delivery a keynote address on the occasion of the NDIC special day at the 2016 Lagos International Trade fair.
The deposit Insured limit of the PMBs before now was increased from N100,000 to N200,000.
According to Ibrahim, the Minimum Deposit Insurance Coverage (MDIC) per depositor per bank has risen from N50,000 in 1989 to its current N500,000 per depositor per bank,
while insured limit for microfinance banks ( MFBs) and primary mortgage banks (PMBs) equally grew from N100,000 in 2009 to N200,000 per depositor per MFB/PMB in 2010.
He noted that, following the Central Bank of Nigeria (CBN) licensing of non-interest banking institutions (NIBIs) and 21 mobile money operators (MMOs), the corporation equally extended deposit insurance coverage to the subscribers of these banking products to the maximum limit of N500,000 per depositor.
The corporation, he said has developed a framework of Pass-Through Deposit Insurance Scheme (PTDIS) and Non-Interest Deposit Insurance Scheme (NIDIS) to the MMOs and non-interest bank subscribers respectively with a minimum insured limit of N500,000 per subscriber.
He however noted that depositor who have funds in excess of the insured limit were entitled to liquidation dividend after recovery of debts and sale of physical assets of the closed banks.
Speaking further, Ibrahim assured that the corporation has mapped out aggressive public awareness campaign strategies to promote financial inclusion adding that it has published various books which include ‘Financial Literacy in Nigeria: A study Report, perspectives on the Nigerian Financial Safety-Net”, among others.
He pointed out that the corporation has partnered the National University Commission (NUC) to introduce a pilot scheme of two courses on deposit Insurance Scheme (DIS) in the curricular of undergraduate programmed in seven selected premier universities in the country