The Nigeria Deposit Insurance Company (NDIC) collected a total of N93.83 billion as deposit insurance premium from Banks in Nigeria in 2018.
This was disclosed in the NDIC annual report released by the agency recently. The breakdown of the Insurance premium paid by banks revealed that N92.45 billion was collected from Deposit Money Banks (DMBs), N306.24 million from Non Interest Banks (NIB) and N1.065 billion from the Micro Finance Banks (MFBs) and Primary Mortgage Banks (PMBs).
The annual report also shows that Deposit Insurance Fund (DIF) grew by 14.66% to N1,095.23 in 2018. The Special Insured Institutions Fund (SIIF) also grew by 10.72% to ₦109.88 billion in 2018, while Non-Interest Deposit Insurance Fund (NIDIF) increased by 43.47% to N999.94 million in 2018.
According to the report, the total insurance deposit till date of N1.206 trillion fell short of the agency’s industry exposure of N3.32 trillion as at December 2018.
The NDIC is the agency of government responsible for insuring customers deposit in banks in Nigeria. They are charged with the mandate of Deposit Guarantee, Bank Supervision, Distress Resolution and Bank liquidity.
NDIC insurance rate is 0.45% of customers deposits in DMBs and PMBs, while the flat-rate premium assessment method is used for the MFBs. And coverage level is N500,000 per depositor per bank for customers of DMBs, PMBs, NIBs and Mobile Money Operators (MMOs) while customers of MFBs gets maximum of N200,000 per depositor per bank in the event of default.
Statistics as contained in the reports revealed that 954 Financial Institutions being 27 DMBs, 38 PMBs and 888 MFBs with total deposit of N21.73 trillion and total insured deposit cover of N3.23 trillion are currently covered by the agency as at end of 2018.