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The Nigeria Deposit Insurance Corporation (NDIC) has reaffirmed the strength of Nigeria’s financial safety net, disclosing that more than 98 per cent of bank depositors and 281 million deposit accounts are currently protected under its deposit insurance scheme.
The assurance was given by the Managing Director and Chief Executive Officer of the NDIC, Thompson Sunday, during a retreat for members of the House of Representatives Committee on Insurance and Actuarial Matters held in Lagos.
The retreat, themed “Strengthening the Financial Safety Net in an Era of Banking Sector Recapitalisation and Fintech Innovation,” focused on enhancing financial system resilience as Nigeria’s banking sector undergoes recapitalisation and embraces rapid technological transformation.
NDIC emphasises balance between innovation and financial stability
Speaking at the event, Sunday said maintaining the right balance between financial innovation, consumer protection and financial stability remains a critical policy priority for regulators.
He noted that the increasing digitalisation of banking and financial services has expanded access to formal financial services but has also heightened exposure to cybersecurity threats, digital fraud, operational risks and data privacy concerns.
According to him, regulators and financial safety-net institutions must continue strengthening regulatory compliance, risk assessment and compliance management frameworks to address emerging threats while supporting innovation across the financial sector.
“As financial institutions continue to adopt emerging technologies, regulators must remain proactive in identifying and mitigating evolving risks without slowing innovation,” he said.
Fintech driving financial inclusion
Sunday acknowledged the significant contribution of financial technology companies to Nigeria’s financial inclusion agenda.
He said digital banking platforms, mobile money operators, payment service providers and other fintech innovations have transformed financial service delivery by extending access to millions of previously unbanked and underserved Nigerians.
According to the NDIC boss, while technological innovation has improved payment efficiency and expanded financial access, banks and fintech operators must continue strengthening governance, risk management and regulatory compliance to safeguard customers’ funds.
Banking recapitalisation strengthens resilience
Commenting on the recently concluded banking sector recapitalisation programme, Sunday described the exercise as a major milestone in enhancing the capacity of Nigerian banks to support long-term economic growth.
He explained that stronger capital bases position banks to absorb economic shocks, finance large-scale investments, support business expansion and remain resilient during periods of financial uncertainty.
However, he stressed that capital adequacy alone is insufficient without sound corporate governance, effective internal controls, strong compliance culture, regulatory monitoring and comprehensive risk management systems.
According to him, these elements collectively form the foundation of a resilient financial safety net capable of preserving public confidence and supporting sustainable economic development.
Public confidence remains critical
The NDIC Managing Director noted that trust remains the cornerstone of every stable financial system.
He warned that declining public confidence can rapidly trigger financial distress capable of affecting not only individual institutions but the broader economy.
Sunday said strengthening measures that protect depositors and investors will remain essential as Nigeria pursues its ambition of building a one-trillion-dollar economy by 2030.
Lawmakers call for stronger regulatory frameworks
In his opening remarks, Chairman of the House Committee on Insurance and Actuarial Matters, Ahmadu Usman Jaha, said the global financial services industry is undergoing significant transformation driven by digital innovation, artificial intelligence, cybersecurity risks and changing customer expectations.
He noted that Nigeria’s ongoing banking recapitalisation exercise presents significant opportunities for economic growth, financial inclusion and technological innovation, while simultaneously introducing new regulatory and systemic risks.
According to Jaha, these developments require stronger institutions, modern regulatory frameworks and more effective financial safety-net mechanisms capable of maintaining confidence across the financial system.
He added that Nigeria’s banking sector continues to play a central role in the economy, managing assets worth several trillions of naira while serving tens of millions of customers through both conventional banking channels and rapidly expanding digital platforms.
Jaha further observed that the rapid growth of fintech has significantly improved payment efficiency and financial inclusion but has also introduced complex challenges relating to cybersecurity, operational resilience, consumer protection, fraud detection and deposit insurance coverage.
He called for continued collaboration among regulators, lawmakers and industry stakeholders to strengthen Nigeria’s regulatory framework, enhance financial stability and ensure the country’s financial system remains resilient in an increasingly digital economy.
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