Corporation says more than 98% of depositors are fully covered while technology is being deployed to speed up reimbursement after bank failures……
The Nigeria Deposit Insurance Corporation has urged Nigerians to steer clear of unregulated investment schemes, warning that promises of unusually high returns could expose unsuspecting investors to substantial financial losses.
The Managing Director and Chief Executive of the NDIC, Thompson Oludare Sunday, issued the warning on Wednesday, September 30, 2026, during the corporation’s special day at the 21st Abuja International Trade Fair.
Sunday advised individuals and businesses to keep their funds with licensed financial institutions and verify the status of investment operators before committing their money.
He said the repeated emergence and collapse of Ponzi schemes had shown the financial and emotional consequences of placing savings in the hands of unregulated operators.
“If an investment promise sounds too good to be true, Nigerians should pause, ask questions and verify before committing their money,” he said.
The NDIC boss also encouraged Nigerians to strengthen their financial knowledge and make responsible use of digital financial services.
According to him, the corporation is strengthening its depositor-protection framework through wider insurance coverage, technology-based reimbursement systems and closer supervision of insured financial institutions.
Sunday disclosed that the enhanced deposit insurance limits introduced in 2024 now provide full coverage for more than 98 per cent of depositors across insured institutions.
The corporation is also using technology to reduce the time required to reimburse customers when insured financial institutions fail.
Sunday said the NDIC had moved away from lengthy manual reimbursement procedures by deploying Bank Verification Numbers, the Single Customer View framework and infrastructure provided by the Nigeria Inter-Bank Settlement System.
He said verified depositors of failed banks could now receive their insured funds within days of a bank’s closure.
The corporation has also strengthened its risk-management processes through risk-based supervision, an enhanced differential premium assessment system and a Bank Liquidation Management System.
As part of its digital transformation, the NDIC launched an upgraded website on September 19, 2026.
The platform features automated claims-processing tools, a directory of insured financial institutions and an artificial intelligence-powered virtual assistant designed to improve access to information and services.
Sunday urged depositors to ensure that their account details are accurate and consistently linked to their BVNs, noting that proper account information would help speed up the reimbursement process when claims arise.
Under the revised deposit insurance framework, customers of Deposit Money Banks and Mobile Money Operators are insured for up to N5 million per depositor.
The coverage limit for customers of Microfinance Banks, Primary Mortgage Banks and Payment Service Banks stands at N2 million.
The increased limits are intended to provide a wider financial safety net for households, small businesses and other depositors if an insured institution becomes unable to meet its obligations.
For depositors whose balances exceed the insured limits, the NDIC may make additional liquidation payments from funds recovered through debt collection and the disposal of assets belonging to failed institutions.
The importance of the reimbursement framework was highlighted following the closure of Heritage Bank in June 2024.
The NDIC subsequently paid 82.36 per cent of the bank’s insured deposits during the initial reimbursement exercise, with the corporation completing the payment four days after the bank’s closure through BVN-enabled transfers.
The corporation has continued to warn that funds placed with unlicensed investment operators do not enjoy NDIC deposit insurance protection.
It therefore urged Nigerians to confirm that financial institutions and investment operators are properly licensed and to independently verify investment opportunities before committing their savings.
