This is the Nigeria Deposit Insurance Corporation's (NDIC) website with a background on the NDIC and its purpose in the banking system with a focus on Micro finance banks (MFBs) and Primary Mortgage Banks (PMBs). Also included on the page, are answers to frequently asked questions (FAQs) on the NDIC, MFBs and PMBs. The following topics are covered on the page:
1. What is deposit insurance?
2. How does it work?
3. Why do we need deposit insurance?
4. Is deposit insurance the same as a conventional insurance?
5. Are all financial institutions insured by NDIC?
6. How does the NDIC protect depositors of MFBs and PMIs against loss?
7. Does the NDIC protect the interests of creditors or shareholders of a failed MFB or PMI?
8. What is the premium rate to be charged on deposit liabilities of MFBs and PMIs?
9. What is basic insurance protection afforded a depositor of a MFB or PMI?
10. why is the deposit insurance coverage limited to a fixed sum of N200,000?
11. What was the basis of arriving at the guaranteed sum of N200,000?
12. What types of deposits are insured?
13. What types of deposits of a MFB or PMI are not insured?
14. Why are directors and staff deposits not covered by the dis while deposits of shareholders are covered?
15. Is the insurance protection increased by placing one’s funds in two or more types of deposit accounts in the same MFB or PMI?
16. If a depositor has deposit accounts in several different insured MFBs and PMIs, will the deposit be added together for the purpose of determining insurance coverage?
17. What is the priority of payment of liabilities of failed MFBs/PMIs?
18. What sort of assistance can the corporation render to insured institutions?
19. Is there any arrangement in place by the corporation to waive or reduce premium payable over time for insured institutions?
20. Is there any tax advantage in premium payment?
21. Joint accounts
22. Special types of accounts
23. Would funds released by a federal mortgage bank for NHF loans and other poverty alleviation funds, donor funds, deposit for shares with PMIs/MFBs be included as deposits when computing the deposit insurance premium?
24. Other questions
25. If a depositor has more than N200,000.00 deposit in a closed microfinance bank or primary mortgage institution, does he retain his claim against the institution for the amount of his deposit in excess of the N200,000.00 insured deposit paid by the corporation?
26. Can insured–status of a licensed MFB or PMI be terminated?
27. What is the status of depositors in a case where an insured microfinance bank or primary mortgage institutions acquired by another insured MFB or PMI?