The Nigeria Deposit Insurance Corporation (NDIC) has assured Nigerians that the banking sector remains protected by several financial safety measures, stating that more than 98 per cent of bank depositors and about 281 million accounts are insured by the corporation.
NDIC Managing Director Thompson Sunday gave the assurance on Wednesday in Lagos during a retreat for members of the House of Representatives Committee on Insurance and Actuarial Matters.
Speaking on the theme, “Strengthening the Financial Safety Net in an Era of Banking Sector Recapitalisation and Fintech Innovation,” Sunday said regulators must strike a balance between innovation, consumer protection and financial stability.
He noted that the rapid digitisation of financial services has increased exposure to cyber threats, fraud, data breaches and operational risks. According to him, regulators and financial safety-net institutions must remain proactive in identifying and reducing these risks while still encouraging technological innovation.
Sunday said the growth of financial technology has transformed the delivery of financial services in Nigeria, with digital banking, mobile money and payment platforms helping millions of previously unbanked and underserved Nigerians gain access to formal financial services.
He added that as banks adjust to higher capital requirements and emerging technologies continue to reshape the sector, it is important to strengthen regulations that protect depositors’ funds and maintain financial stability.
The NDIC boss explained that a strong and well-coordinated financial safety net is essential for preserving public confidence, supporting the orderly resolution of distressed institutions and preventing systemic crises.
He said such confidence is critical as Nigeria pursues its economic growth targets, including the ambition of becoming a $1 trillion economy by 2030.
Sunday also described the recently concluded banking sector recapitalisation programme as a major step toward improving the capacity of Nigerian banks to support economic development.
According to him, well-capitalised banks are better able to absorb shocks, finance large investments, support enterprise growth and withstand periods of economic uncertainty. However, he stressed that recapitalisation must be accompanied by effective regulation, sound corporate governance, strong risk management and a good compliance culture.
Chairman of the House Committee on Insurance and Actuarial Matters, Ahmadu Usman Jaha, said global financial systems are being reshaped by rapid technological change, artificial intelligence, cybersecurity risks and evolving customer expectations.
He noted that Nigeria is undergoing one of its most significant banking recapitalisation exercises in recent years, requiring banks to remain innovative, resilient and competitive.
Jaha added that while fintech has improved financial inclusion and payment efficiency, it has also introduced challenges related to cyber resilience, operational risk, consumer protection, digital fraud and the scope of deposit insurance coverage, issues he said require continuous legislative attention and coordinated policy responses.
