NDIC targets ‘small savers’ in deposit insurance awareness

By Obas Esiedesa & Nnasom David, Abuja

The Nigeria Deposit Insurance Corporation (NDIC) has intensified its grassroots financial literacy campaign with an awareness programme held at Wuse Market as part of its ongoing pilot outreach aimed at enlightening traders and small savers on deposit insurance and safe banking practices.

Speaking during an advocacy held at Wuse Market, Abuja, on Thursday, Mrs Hawwau Gambo, Head of the Communication and Public Affairs Department (CPAD) of the NDIC, said the initiative was designed to educate Nigerians, particularly small-scale traders, on how deposit insurance works and how the Corporation protects depositors’ funds in the event of a bank failure.

“We’re here to enhance public awareness about deposit insurance and how the NDIC protects the money of depositors in banks. Our focus is on small savers and traders who may not fully understand banking operations,” Gambo explained.

She stressed the importance of saving money in banks licensed by the Central Bank of Nigeria (CBN), noting that only such banks pay premiums to the NDIC and therefore qualify their customers for deposit insurance coverage.

Gambo clarified that under the scheme, depositors in commercial banks are entitled to compensation of up to N5 million, while microfinance and payment service bank depositors are covered up to N2 million, depending on their account balances.

According to her, the campaign aims to strengthen public confidence in the financial system and empower citizens to make informed decisions about where and how to save their money.

She also addressed concerns raised by some participants regarding alleged loan agents claiming to represent microfinance banks.

Gambo advised traders to remain cautious, warning that some individuals posing as agents could be loan sharks exploiting unsuspecting small business owners.

“We’re enlightening them on how to protect themselves and make sound financial choices. Most importantly, we’re reminding them that when they save their money in CBN-licensed banks, they are safe, and if any such bank fails, the NDIC will reimburse them,” she added.

Also speaking, Mrs. Yetunde Alade, Senior Manager, CPAD, said the outreach is part of a focus group discussion under a pilot programme launched to reach diverse market groups.

“We realized that many people, especially small savers, are not fully informed about how the banking system works. This programme targets them, to teach how to save, where to save, and what to do if anything happens to their bank,” Alade said.

She added that the NDIC team had earlier visited Ado mechanic before bringing the sensitization effort to Wuse Market, as part of a broader plan to strengthen financial inclusion and public trust in Nigeria’s banking sector.

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