Prof. Uche Uwaleke, the President of Capital Market Academics of Nigeria, has applauded the Nigeria Deposit Insurance Corporation (NDIC) for the upward review of maximum deposit insurance coverage for deposit financial institutions.
Uwaleke disclosed this in an interview with the News Agency of Nigeria (NAN) on Thursday in Abuja.
NAN reports that deposit insurance is the government’s guarantee that an account holder’s money at an insured bank is safe up to a certain amount.
Uwaleke described the move as a welcome development against the backdrop of elevated inflation and current Naira depreciation.
He said the increase would be a confidence booster in the country’s banking sector as well as enhance financial inclusion.
”The increase in the maximum deposit insurance coverage level from N500,000 to five million naira for Deposit Money Banks and from N200,000 to two million naira for Microfinance Banks is a welcome development.
”This is against the backdrop of elevated inflation and Naira depreciation,” Uwaleke said.
NAN reports that maximum deposit insurance coverage level for Primary Mortgage Banks was also increased from N500,000 to two million naira.
NAN also reports that for subscribers of Mobile Money Operators (MMOs), the deposit insurance coverage was increased from N500,000 to five million naira per subscriber, per MMO.
The Payment Service Banks insurance coverage was also increased from N500,000 to two milliom naira.
Uwaleke lauds NDIC’s maximum deposit insurance coverage upward review
