The Nigeria Deposit Insurance Corporation (NDIC) has listed expanded deposit insurance coverage and faster payout systems as measures designed to protect ordinary bank customers and small businesses from financial shocks.

It also said that it has intensified efforts to strengthen customer confidence in Nigeria’s banking system.

At the NDIC Stakeholders’ Town Hall Meeting in Enugu, the bank’s Executive Director (Operations), Dr. Kabir S. Katata, said the Corporation was committed to protecting depositors’ funds, adding, however, that the agency does not regulate the operations of banks.

The Corporation’s renewed stakeholder engagement strategy is focused on helping bank customers clearly understand how their deposits are protected, particularly during periods of financial uncertainty.

Katata noted that misconceptions persist among customers about what deposit insurance covers, how reimbursements are processed when banks fail, and what depositors should do in such situations.

He said that breaching the knowledge gaps was critical to strengthening public trust and deepening participation in formal banking.

“Our commitment to protecting depositors is not just a regulatory function — it is about safeguarding the hard-earned savings of millions of Nigerians, especially low-income earners, small traders and small business owners who depend on the banking system for daily transactions,” he said.

He said the Corporation increased deposit insurance coverage in 2024, in a major consumer – protection policy move, raising the maximum insured limit to ₦5 million for depositors in Deposit Money Banks, Mobile Money Operators and Non-Interest Banks, while customers of Microfinance Banks, Primary Mortgage Banks and Payment Service Banks are now covered up to ₦2 million.

Katata said the policy expansion was deliberately designed to protect small savers and support financial inclusion, noting that the enhanced cover now protects about 99 per cent of depositors in Nigeria.

He highlighted improvements in claims settlement timelines, citing the prompt reimbursement of customers of the defunct Heritage Bank Limited, Union Homes Plc and Aso Savings and Loans Plc.

Katata urged customers to ensure their BVN is properly linked to all bank accounts to guarantee seamless access to insured funds if needed.

He stressed that protecting depositors ultimately strengthens the broader economy by ensuring the banking system remains a reliable channel for savings, credit access and investment.

“We want customers to know that their money in licensed banks is safe. That confidence is essential for business growth, household financial security and national economic stability,” he said.

The Controller of NDIC Enugu Zonal Office, Chidi Nwankwo, said the town hall engagement reflects NDIC’s customer-first approach to financial system stability and consumer protection.

Nwankwo noted that Enugu’s growing commercial ecosystem depends heavily on trust in the financial system, especially for traders, entrepreneurs, artisans and households.

“When customers are confident their deposits in licensed banks are protected, it strengthens business activity and encourages more people to use formal financial services,” he said.

The corporation said feedback from customers, civil society groups, financial institutions and youth organisations at the town hall would help refine its consumer communication strategy and service delivery framework.