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The short answer
The NDIC insures deposits up to ₦5 million per depositor per commercial bank and ₦2 million per depositor at microfinance and primary mortgage banks, after raising its limits in 2025. Cover started at ₦50,000 when the NDIC was set up in 1988, rose to ₦200,000 for commercial banks in 2006 and to ₦500,000 in 2010.
The Nigeria Deposit Insurance Corporation (NDIC) protects depositors if a licensed bank fails, paying insured deposits up to a maximum per depositor. This page records how that maximum has changed. For what the cover means today and how a claim works, see NDIC deposit insurance limits explained.
Maximum cover per depositor (as of October 2026)
| Type of institution | Cover per depositor per bank | Since |
|---|---|---|
| Deposit money (commercial) banks | ₦5,000,000 | 2025 |
| Microfinance banks | ₦2,000,000 | 2025 |
| Primary mortgage banks | ₦2,000,000 | 2025 |
| Mobile money subscribers | Pass-through cover where funds are held in a bank | See NDIC |
| Payment service banks | Covered; check NDIC for the current limit | See NDIC |
How the limit has changed
| Year | Commercial banks | Microfinance banks | Primary mortgage banks | Legal basis or event |
|---|---|---|---|---|
| 1988 | ₦50,000 | Not yet covered | Not yet covered | NDIC established by Decree No. 22 of 1988 |
| 2006 | ₦200,000 | ₦100,000 | ₦100,000 | NDIC Act 2006 |
| 2010 | ₦500,000 | ₦200,000 | ₦200,000 | Review after the 2009 banking crisis |
| 2025 | ₦5,000,000 | ₦2,000,000 | ₦2,000,000 | Review under the NDIC Act 2023 |
Each increase followed a period of change in the banking system: the 2006 rise came after the 2005 bank consolidation, the 2010 rise after the CBN's intervention in several banks in 2009, and the 2025 rise during the bank recapitalisation programme and after years of high inflation had eroded the real value of the ₦500,000 cover.
Because the limit is per depositor per bank, spreading savings across two or more licensed banks increases the total insured amount. A depositor with ₦8 million could, for example, keep ₦4 million in each of two commercial banks and have all of it within the cover. Joint accounts and accounts held in trust are treated under NDIC rules; check with the NDIC if your account is not in your sole name.
What the cover is worth in real terms
Fixed naira limits lose value as prices rise. The ₦500,000 limit set in 2010 was in place for about 15 years, during which consumer prices rose many times over. The tenfold rise to ₦5 million in 2025 restored a large part of the real value, and the NDIC said at the time that the new limits would fully cover the great majority of depositors by number.
| Example only | Insured | Uninsured |
|---|---|---|
| ₦3,000,000 in one commercial bank | ₦3,000,000 | ₦0 |
| ₦7,000,000 in one commercial bank | ₦5,000,000 | ₦2,000,000 (claim on the bank's liquidation) |
| ₦3,000,000 in one microfinance bank | ₦2,000,000 | ₦1,000,000 |
| ₦4,000,000 split across two commercial banks | ₦4,000,000 | ₦0 |
Uninsured amounts are not lost automatically: depositors can be paid further amounts from the sale of the failed bank's assets, but the timing and amount are uncertain.
How a payout works
- The CBN revokes the failed bank's licence and the NDIC is appointed liquidator.
- The NDIC identifies insured depositors from the bank's records, using the Bank Verification Number (BVN) to match each depositor across accounts.
- Insured amounts up to the limit are paid, typically into another bank account in the depositor's name linked to the same BVN.
- Depositors with balances above the limit are paid further sums as the NDIC recovers loans and sells assets, in liquidation dividends.
- Depositors who are not paid automatically can file claims with the NDIC with proof of their deposit.
The cover applies to deposits, not investments. Shares, bonds, mutual funds and money held with an investment or lending company that is not a licensed bank are outside NDIC cover. The NDIC Act also sets out deposits that are excluded, such as interbank deposits; check the Act for the full list. Inflation erodes any fixed limit, so the history above is also a record of how often the NDIC has had to catch up; see inflation by month.
Deposit insurance is funded by premiums that insured banks pay to the NDIC each year, not by depositors, and the NDIC also supervises banks alongside the CBN to reduce the chance of failure in the first place.
Key dates in Nigerian deposit insurance
- 1988: NDIC established; operations begin in 1989.
- Late 1990s and early 2000s: NDIC handles the closure of dozens of failed banks.
- 2005 to 2006: bank consolidation reduces the number of commercial banks; NDIC Act 2006 replaces the 1988 law.
- 2010: limits raised after the 2009 banking crisis.
- 2015 onwards: deposits at non-interest banks covered through a separate fund; pass-through cover for mobile money.
- 2023: NDIC Act 2023 updates the legal framework, including resolution powers.
- 2025: limits raised to ₦5 million and ₦2 million.
How we put this together
Sources: NDIC publications and annual reports, the NDIC Acts of 2006 and 2023, and contemporary reports of each limit change. Period: 1988 to October 2026. Gaps: the current limit for payment service banks and the exact date in 2025 the new limits took effect were not re-checked for this update; the 2015 date for non-interest bank cover is approximate.
Where Pryme fits
Pryme Financial is a technology company, not a bank. Naira deposits in Pryme accounts are held by Solid Allianze Microfinance Bank Ltd, licensed by the CBN and insured by the NDIC up to the applicable limit. See how Pryme works and whether your money is safe in a Nigerian fintech.
Questions people ask
How much does the NDIC insure in Nigeria?
₦5 million per depositor per commercial bank and ₦2 million per depositor per microfinance or primary mortgage bank, under the limits announced in 2025. Check the NDIC website for other categories such as payment service banks.
Is the NDIC limit per account or per person?
Per depositor per bank. Several accounts in the same name at the same bank are added together. Accounts at different banks are insured separately.
Does NDIC cover fintech wallets?
Deposits held at a licensed bank are covered up to the limit. Mobile money wallets are covered through pass-through deposit insurance where the funds sit in a bank. A fintech that is not a bank is not insured itself; what matters is where the money is held.
When was the NDIC limit last increased?
In 2025, when the cover for commercial banks went from ₦500,000 to ₦5 million and for microfinance and primary mortgage banks from ₦200,000 to ₦2 million.
Sources
- Nigeria Deposit Insurance Corporation · accessed Oct 2026
- Nigeria Deposit Insurance Corporation Act 2023, National Assembly · accessed Oct 2026
- Central Bank of Nigeria, rates and statistics · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.