NDIC to raise guarantee level for depositors .

DEPOSITORS with any distressed bank may no longer be left to lick their wounds with the return of paltry sums of their funds.

Under a new regime, the ceiling on the amount to be paid to the depositors is being raised upward by the Nigeria Deposit Insurance Corporation (NDIC).

The Guardian learnt that the guarantee scheme, through which banks’ depositors are protected against loss in the event of a bank’s failure has been raised to N500,000 for customers of commercial banks and N250,000 for those of micro-finance banks (MFBs).

The new deposit insurance guarantee scheme may be announced before the end of this year, a source said.

It was also learnt that the review was concluded about two weeks ago by the NDIC Board, which met in Abuja and recommended between N250,000 and N500,000 as maximum insured cover for depositors of microfinance institutions and commercial banks.

A board member told The Guardian that the review had become necessary following agitations by depositors and other stakeholders on the need for the upward review of the scheme to boost confidence in the banking sector as well as encourage saving culture in Nigeria .