The Nigeria Deposit Insurance Corporation (NDIC) has reassured Nigerians that the country’s banking sector remains secure, revealing that more than 98 per cent of depositors and over 281 million bank accounts are covered under its deposit insurance scheme.
Speaking on Wednesday at a retreat for members of the House of Representatives Committee on Insurance and Actuarial Matters in Lagos, NDIC Managing Director, Thompson Sunday, said the corporation remains committed to safeguarding depositors’ funds while strengthening confidence in the financial system.
The retreat, themed “Strengthening the Financial Safety Net in an Era of Banking Sector Recapitalisation and Fintech Innovation,” focused on the evolving challenges facing Nigeria’s banking industry.
Sunday noted that the rapid digitisation of financial services has increased exposure to cyber threats, fraud, data breaches and operational risks, stressing that regulators must stay ahead of emerging risks while encouraging innovation.
He said the growth of financial technology (fintech) has transformed financial service delivery, with digital banking, mobile money and payment platforms significantly expanding access to formal financial services for millions of previously unbanked Nigerians.
“As the banking industry adjusts to higher capital requirements and technological innovations reshape financial service delivery, it is imperative for banks to strengthen measures that protect depositors’ funds and preserve financial stability,” he said.
According to him, a strong and coordinated financial safety net remains essential for maintaining confidence in the banking system, protecting depositors, ensuring the orderly resolution of distressed financial institutions and preventing systemic crises.
Sunday added that Nigeria’s ambition of becoming a one-trillion-dollar economy by 2030 depends partly on a resilient financial system capable of inspiring confidence among depositors and investors.
He also described the recently concluded banking sector recapitalisation exercise as a major milestone, saying stronger capital positions would enable banks to absorb economic shocks, finance large-scale investments and support business growth.
However, he stressed that recapitalisation alone is insufficient without effective regulation, sound corporate governance, strong risk management and strict compliance.
“The stability of the financial system depends largely on the trust depositors and investors place in financial institutions. Where confidence is weak, financial distress can spread rapidly across the economy,” Sunday said.
Also speaking at the event, Chairman of the House Committee on Insurance and Actuarial Matters, Ahmadu Usman Jaha, said technological advancement, artificial intelligence, cybersecurity challenges and changing customer expectations are rapidly transforming global financial systems.
He noted that Nigeria’s ongoing banking recapitalisation exercise presents significant opportunities for economic growth, financial inclusion and innovation but also introduces new systemic risks that require stronger regulatory institutions and a more robust financial safety net.
Jaha said the evolving financial landscape underscores the need for modern regulatory frameworks capable of maintaining public confidence and ensuring the long-term stability of Nigeria’s banking sector.
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