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 protection for customers of deposit money banks.
The Corporation said the revised 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 formal finance.
The Assistant Director, Communication and Public Affairs Department at NDIC, Mr Adegbenga Fabuyi, made the call on Saturday at the 2026 FICAN Conference and 36th Anniversary in Lagos.
Fabuyi said the enhanced coverage was particularly important as Nigeria implements banking sector reforms, including the ongoing recapitalisation exercise designed to strengthen the capacity and resilience of banks. A resilient banking system, he said, cannot be achieved without public confidence — which is where deposit insurance comes in. “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 is not a substitute for deposits.
Fabuyi clarified a common misconception about bank recapitalisation, explaining that the fresh capital injected into banks should not be regarded as money automatically available for lending to customers. Banks, he said, would continue to depend largely on customer deposits to support lending and credit activity. “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 called for intensified efforts by banks, regulators and the media to educate Nigerians on the importance of keeping their money within regulated financial institutions, saying the increased insurance limit gave added reassurance to those still reluctant to keep substantial sums in banks over safety concerns. He expressed concern that some Nigerians continue to keep large amounts of cash at home, on rooftops, on farms and in other informal locations — exposing those funds to theft, fire and permanent loss — stressing that money held within insured institutions enjoys protection that cannot be guaranteed outside the formal financial system.
NDIC backs fintech expansion.
Fabuyi also highlighted the Corporation’s role in the growing fintech ecosystem, saying it was supporting the expansion of digital financial services through deposit insurance coverage for eligible deposit-taking institutions within the regulated financial system — specifically citing mobile money operators and fintech-enabled microfinance banks. Extending deposit protection to eligible digital financial service providers, he said, was important for building confidence among Nigerians increasingly using technology-driven platforms for savings, payments and other transactions. “The NDIC is also strongly supporting that, to encourage people to bring their money into that sector also,” he said.
Media critical of banking reforms
Fabuyi commended FICAN for its longstanding relationship with the NDIC and its role in reporting sector developments. Speaking on behalf of the NDIC Managing Director/Chief Executive, Mr Thompson Oludare Sunday, he congratulated FICAN on its 36th anniversary and acknowledged its contribution to financial journalism and public understanding of the banking industry.
He said the media remained a critical partner in communicating the benefits of deposit insurance, banking reforms and fintech developments to the wider public, urging financial correspondents to intensify enlightenment efforts on the revised deposit insurance limit. Stronger collaboration between the NDIC and financial journalists, he said, 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.
He maintained that greater public confidence, increased deposit mobilisation and effective regulation would remain key to building a financial system capable of supporting Nigeria’s broader economic ambitions.
Sunday Michael Ogwu is a Nigerian journalist and editor of Pinnacle Daily. He is known for his work in business and economic reporting. He has held editorial roles in prominent Nigerian media outlets, where he has focused on economic policy, financial markets, and developmental issues affecting Nigeria and Africa more broadly.