Nigeria: Depositor Corporation increases insurance cover for PMBs

Dec 01, 2016

Nigeria Deposit Insurance Corporation raises insurance cover by 150%

The Nigeria Deposit Insurance Corporation (NDIC) has raised deposit insurance coverage for Primary Mortgage Banks (PMBs) from N200,000 cent to N500,000, which implies a 150 per cent increase. This development which was disclosed at the 2016 workshop for PMBs' operator yesterday by Managing Director of NDIC, Umaru Ibrahim, is designed to enhance the confidence and patronage of mortgage customers in Nigeria. Ibrahim said "the current coverage level represents an increase of 150 per cent over the earlier level of N200,000. Thus, the gap of the coverage between the commercial banks and PMBs is now bridged with the envisaged increase in patronage of PMBs." Ibrahim further noted that the NDIC records revealed that 15 out of 42 PMBs are yet to meet their premium payment obligations to the corporation. He charged the affected operators to promptly pay their premium to the corporation in line with regulatory guidelines. NDIC has been reviewing its policies to secure depositors' money in banks. The NDIC in August 2016 had reviewed its Maximum Deposit Insurance Coverage (MDIC) for PMBs by 99 per cent out of a survey which revealed the compelling need for upward review of the MDIC for PMBs per depositor.