The Managing Director/Chief Executive Officer of the Nigeria Deposit Insurance Corporation, Bello Hassan, has revealed that only 25 per cent of the value of customers’ deposits are insured by the corporation.
Hassan said this on Monday on the sidelines of the 2024 Sensitisation Seminar for justices of the court of appeal in Lagos, themed ‘Building Strong Depositors Confidence in Banks and Other Financial Institutions through Adjudication’.
Addressing concerns about the recent hike in deposit insurance coverage for banks, Hassan said, “As a deposit insurer, we are supposed to review the deposit insurance coverage from time to time to ensure that it is adequate and credible because we believe that is what would endanger confidence among depositors. What we did was to review the existing coverage upward. We looked at the average deposit, other factors like the impact of inflation, GDP per capita, exchange rate and other factors and we concluded that we need to increase the deposit insurance limits.”
“Even though the number of depositors we are covering is about 98 per cent, in terms of value we are only covering 25 per cent, which means about 75 per cent of deposit value is not covered.”
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