NIGERIAN DEPOSIT INSURANCE CORPORATION ACT, 2006
Act · Finance
Policy date: 2006-01-01
An Act establishes the Nigeria Deposit Insurance Corporation to insure bank depositors against losses in the event of bank failure. It targets bank depositors and financial institutions. This promotes stability and confidence in the banking system.
NIGERIAN DEPOSIT INSURANCE CORPORATION ACT, 2006
What Is This Policy?
An Act establishing the Nigeria Deposit Insurance Corporation (NDIC) and prescribing its mandate to insure bank depositors against loss in the event of bank failure, thereby protecting depositors and maintaining financial system stability.
Who Does It Target?
Bank depositors in CBN-licensed financial institutions Commercial banks, microfinance banks, and PMIs NDIC management and examiners The Central Bank of Nigeria as co-regulator
What Does It Aim to Achieve?
Protect depositors from loss when a bank fails, reduce the risk of bank runs, promote public confidence in the Nigerian banking system, and facilitate the orderly resolution of failing banks.
Key Features
Deposit Insurance Coverage: Insures eligible depositors up to a maximum per depositor per bank (currently N5 million for commercial banks). Premium Collection: Collects annual insurance premiums from member institutions based on their deposit base. Failed Bank Resolution: NDIC is involved in liquidating failed banks and paying out insured depositors. Bank Examination: NDIC conducts independent examinations of member banks to assess risk.
Current Status
Rollout Stage: Active — NDIC insuring deposits at all licensed banks Coverage: All CBN-licensed deposit-taking institutions Beneficiaries: Bank depositors; financial system stability Funding: Insurance premiums from member institutions
How to Access
All depositors at licensed institutions are automatically covered — no registration required Claims against failed banks processed by NDIC Check NDIC website for current coverage limits Application method: Depositors of failed banks: file claims with NDIC at https://www.ndic.gov.ng
Important Terms
Deposit insurance covers amounts up to the prescribed limit per depositor per bank Amounts above the insured limit are subject to the liquidation distribution process NDIC coverage applies only to insured institutions — not to non-bank investments
Impact & Metrics
NDIC has paid billions in claims to depositors of failed banks since establishment, maintaining depositor confidence.
Official Resources
Website: https://www.ndic.gov.ng Contact: Nigeria Deposit Insurance Corporation (NDIC)
Legal Framework
The Nigerian Deposit Insurance Corporation Act 2006 establishes the NDIC as the deposit insurance body. It operates under the Central Bank of Nigeria Act 2007, the Banks and Other Financial Institutions Act 2020 (BOFIA), and the 1999 Constitution (Second Schedule — banking on the Exclusive Legislative List). The NDIC aligns with the International Association of Deposit Insurers (IADI) Core Principles for Effective Deposit Insurance Systems and the FSB Key Attributes of Effective Resolution Regimes.