Whose Deposits do the NDIC Insure?

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• What type of Deposits are Insured by the NDIC?

  Not all deposits in insured institutions are covered by the NDIC. All deposits of a licenced bank or any other insured deposit-taking financial institution shall be insured with the NDIC with the exception of the following: i.Inter-bank takings; ...

• How are Depositors of failed Insured Institutions informed about the Commencement of Payment of Insured Deposits by the NDIC?

  Announcements would be made through the media (television, radio, newspapers) and NDIC posters at the Head Offices and branches of the closed banks as to when the payment of deposits would commence.

• Does the NDIC finance its Operations from the Insurance Fund?

  No. NDIC finances all its overhead and administrative expenses from its investment income. The main source of income for the NDIC is the proceeds from investment of the insurance fund in securities issued by the Federal Government. The insurance fund ...

• How does NDIC Protect Bank Depositors against Loss?

  The NDIC protects bank depositors against loss through: a) Deposit Guarantee This is the most significant and distinct role of the NDIC. As a deposit insurer, the NDIC guarantees payment of deposits up to the maximum insured sum of N500,000 to a ...

• How does the NDIC Assess Premium and Who Pays for the Insurance Premium?

  Participating institutions are required to pay annual premium to the deposit insurance system administered by the NDIC. The premium is assessed based on participating institutions’ total assessable deposit liabilities as at December 31 of the ...