By Olusegun Obisanya
The Nigeria Deposit Insurance Corporation has urged Nigerians still keeping large sums of money outside the banking system to move their funds into regulated financial institutions, saying the increase in deposit insurance coverage to N5 million has strengthened protection for depositors.
The Corporation said the revised limit, up from N500,000, now fully covers 98.98 per cent of depositors in Nigerian deposit money banks, a development it said should help restore confidence in the banking system and encourage greater participation in the formal financial sector.
Assistant Director, Communication and Public Affairs Department of the NDIC, Adegbenga Fabuyi, made the call on Saturday at the 2026 annual Finance Correspondents Association of Nigeria Conference and 36th Anniversary in Lagos.
Fabuyi said stronger public confidence was particularly important as the banking sector undergoes reforms, including the recapitalisation exercise aimed at improving the capacity and resilience of banks.
“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.
He, however, clarified that the fresh capital being raised by banks through recapitalisation should not be mistaken for funds that would automatically be available for lending.
According to him, deposits mobilised from customers would remain critical to banks’ 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,” Fabuyi said.
He expressed concern that some Nigerians still keep substantial amounts of cash in homes, rooftops, farms and other informal locations, exposing their money to theft, fire and permanent loss.
Fabuyi said the increased insurance limit should give depositors greater assurance that their funds were protected when kept in insured financial institutions.
He also highlighted the NDIC’s support for the expanding fintech ecosystem, noting that eligible deposit-taking activities of regulated digital financial service providers, including mobile money operators and fintech-enabled microfinance banks, benefit from the Corporation’s deposit insurance framework.
“The NDIC is also strongly supporting that to encourage people to bring their money into that sector also,” he stated.
The NDIC official also described the media as a critical partner in explaining banking reforms and deposit protection to Nigerians.
Speaking on behalf of the NDIC Managing Director/Chief Executive Officer, Thompson Oludare Sunday, congratulated FICAN on its 36th anniversary and commended its contribution to financial journalism.
He urged financial correspondents to intensify public enlightenment on the revised insurance limit, saying better understanding of deposit protection would help Nigerians make informed decisions and deepen participation in the formal financial system.
