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OPay, one of Nigeria’s leading financial technology companies, has reassured its customers that their deposits are now insured up to N5 million, aligning with the industry standard set by the Nigeria Deposit Insurance Corporation (NDIC).
In a statement released on Sunday, OPay highlighted its commitment to financial security, emphasizing that this insurance level aligns with the protection provided to depositors of other commercial banks in the country.
This development follows the NDIC’s announcement in May regarding an increase in the maximum deposit insurance coverage from N500,000 to N5,000,000 per subscriber of a mobile money operator. This substantial increase offers a significant safety net for OPay users, ensuring their funds are protected to a much greater extent.
During the press conference announcing this change, NDIC’s Managing Director/Chief Executive Officer, Mr. Bello Hassan, stated, “The revised coverage is a strategic balance between protecting depositors and ensuring the stability of the financial system. These changes aim to extend protection to a larger percentage of the population, enhance financial inclusion, and mitigate the potentially destabilizing effects of bank runs.”
Hassan further explained that the enhanced coverage is supported by the NDIC’s robust financial backing, including deposit insurance funds, anticipated premium collections, and a strong supervision and bank resolution framework as outlined in the NDIC Act No. 33 of 2023. This infrastructure is crucial for maintaining depositor confidence and financial system stability.
OPay echoed this sentiment, stating, “This strategic enhancement not only aims to protect depositors but also encourages market discipline among banks and MMOs. By increasing the insured amount, the NDIC seeks to prevent unnecessary risk-taking by financial institutions, thereby reducing the potential for destabilizing bank runs.”
OPay’s alignment with the NDIC’s revised insurance coverage standards underscores its dedication to safeguarding user funds and promoting financial stability. With this new level of insurance, OPay users can now have the same confidence in the security of their deposits as customers of other commercial banks. This move significantly contributes to a more inclusive and resilient financial ecosystem in Nigeria.
Established in 2018, OPay aims to make financial services more inclusive through technology. The company offers a wide range of payment services, including money transfers, bill payments, airtime and data purchases, card services, and merchant payments, among others. OPay is licensed by the Central Bank of Nigeria (CBN) and insured by the NDIC, ensuring the same level of insurance coverage as other commercial banks.
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