NDIC extends MMO subscribers' maximum limit to N500,000

NDIC extends MMO subscribers’ maximum limit to N500,000

Following intense complaints from the Mobile Money Operators in the country, the Nigeria Deposit Insurance Corporation (NDIC) has extended its insurance coverage to the maximum limit of N500,000.

NDIC extends N500,000 maximum cover to MMO subscribers

Umaru Ibrahim, the managing director/ chief executive officer, NDIC, disclosed this during the NDIC’s special day at the 33rd edition of Lagos International Trade Fair on Wednesday.

He said, “One of the most significant achievements of the corporation is the provision of the deposit insurance coverage to subscribers of Mobile Money Operators to the maximum limit of N500,000 through the pass-through deposit insurance framework.

“As it stands, the number of licensed MMOs by the Central Bank of Nigeria is 23, with eight being bank-led and the remaining 15 non-bank-led. As of 30th June 2019, the number of subscribers to the MMOs stood at 9,249,265.”

As provided in the NDIC Act 2006, Ibrahim explained that when insured financial institutions failed, depositors of Deposit Money Banks, Non-Interest Banks and Primary Mortgage Banks were reimbursed up to a maximum limit of N500,000, while the maximum insured coverage for depositors of microfinance bank would be N200,000.

However, he added, the insured limits were periodically reviewed by the board of the corporation to ensure that the majority of depositors were covered.

As of June, he said the corporation received a total number of 35 petitions and complaints from bank customers on various issues such as the ATM frauds, unauthorised fund transfers, cheque related issues and much more.

Ibrahim said investigations and mediation were carried out where necessary and customers were appropriately reprieved.

Following the issuance of the framework for the licensing and regulation of payment service banks by the CBN which stipulated the extension of deposit insurance coverage to the depositors, he said the corporation had designed an appropriate differential premium assessment system matrix for premium computation payment.

He said the NDIC also set an insurable limit for the depositors in the event of failure.

He said the corporation took measures so as to engender confidence in the system and discourage bank customers from keeping cash at home, shops and other places outside the banks.