Nigerian Deposit Insurance Corporation (NDIC)


The Nigerian Deposit Insurance Corporation (NDIC) is a government agency in Nigeria that was established to protect depositors and guarantee the payment of insured funds in the event of the failure or closure of a licensed bank. The NDIC plays a crucial role in maintaining stability and confidence in the Nigerian banking system.

The NDIC manages two deposit insurance funds, the DIF for universal banks and the Special Insured Institutions. Insurance Fund (SIF) for licensed Microfinance Banks (MFBS) and Primary Mortgage Institutions (PMIs).


The NDIC was established on June 15, 1988, through the NDIC Act No. 22 of 1988. The Act was subsequently amended in 2006 to strengthen the regulatory and supervisory framework.

Functions of Nigerian Deposit Insurance Corporation NDIC


The primary mandate of the NDIC is to provide financial guarantee and insurance coverage for depositors in Nigerian banks. It ensures the safety and stability of the financial system by maintaining public confidence in the banking sector.

Deposit Insurance:

The NDIC provides deposit insurance to depositors in licensed banks, including commercial banks, merchant banks, and primary mortgage banks. The deposit insurance coverage is intended to protect depositors in the event of a bank failure.

  • Risk Minimization:
    • The NDIC works to minimize the risk of bank failures through effective supervision, examination, and regulation of insured financial institutions. It collaborates with the Central Bank of Nigeria (CBN) and other regulatory bodies to ensure the soundness of the banking system.
  • Insured Deposits:
    • The NDIC insures certain categories of deposits, including savings, current, and fixed deposits, up to a specified limit. The deposit insurance coverage helps maintain depositor confidence and stability in the financial system.

Resolution of Failed Banks:

In the event of a bank failure, the Nigerian Deposit Insurance Corporation takes over the management of the failed bank, protects insured depositors, and ensures the orderly resolution of the failed institution. The goal is to minimize disruptions to the financial system and protect the interests of depositors.

Bank Examination and Supervision:

The Nigerian Deposit Insurance Corporation conducts regular examinations of insured banks to assess their financial health, risk management practices, and compliance with regulatory requirements. The agency works closely with the CBN and other regulatory bodies to supervise and regulate banks.

  • Collaboration with Regulatory Bodies:
    • The NDIC collaborates with other regulatory bodies in Nigeria, including the Central Bank of Nigeria (CBN), the Securities and Exchange Commission (SEC), and the Federal Ministry of Finance, to ensure effective oversight and regulation of the financial sector.
  • Public Awareness and Education:
    • The Nigerian Deposit Insurance Corporation engages in public awareness and educational initiatives to inform depositors about the benefits of deposit insurance, their rights, and the measures in place to protect their deposits.

  • Research and Publications:
    • The NDIC conducts research on issues related to deposit insurance, banking stability, and financial system resilience. It publishes reports and guidelines to enhance transparency and knowledge in the financial sector.

The Nigerian Deposit Insurance Corporation plays a critical role in safeguarding the interests of depositors and maintaining the stability of the banking sector in Nigeria. Its activities contribute to the overall health and resilience of the country’s financial system.

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