NDIC says it is looking for bank weaknesses earlier to prevent wider crises

The Nigeria Deposit Insurance Corporation says it is trying to spot weaknesses in banks earlier, before they grow into wider financial crises.

Managing director Thompson Oludare Sunday said the agency has been strengthening its supervision, including checking banks’ books, reviewing loan portfolios and testing whether collateral can be recovered if needed. The corporation is presenting itself less as a payer of claims after failures and more as a risk minimizer inside Nigeria’s financial safety net.

Sunday spoke at the NDIC Special Day at the 21st Abuja International Trade Fair, where he was represented by Hawa Gambo, head of communication and public affairs. He said the NDIC has been using risk-based supervision, a differential premium system, a single customer view framework, a distress resolution suite and a bank liquidation management system.

The NDIC also warned Nigerians to be careful with unlicensed fund managers and promises of unrealistic returns. Sunday said the corporation has been working with the Central Bank of Nigeria and other institutions to strengthen safeguards around the banking system.

In a separate update, Sunday said the enhanced deposit insurance cover introduced in 2024 now protects more than 98 percent of depositors in Deposit Money Banks and Mobile Money Operators, with coverage of up to ₦5 million per depositor per institution. Depositors in Microfinance Banks, Primary Mortgage Banks and Payment Service Banks are covered up to ₦2 million.

Reporting