In a recent announcement, leading Nigerian fintech company OPay has reassured its customers that their deposits are now insured up to N5 million, reflecting the industry standard set by the Nigeria Deposit Insurance Corporation (NDIC). This development aligns OPay with other commercial banks in the country regarding depositor protection.
The move follows the NDIC’s decision in May to increase the maximum deposit insurance coverage from N500,000 to N5,000,000 per subscriber of a mobile money operator. This significant adjustment provides a substantial safety net for OPay users, ensuring enhanced protection for their funds.
At the press conference where this increase was announced, NDIC Managing Director/Chief Executive Officer, Mr. Bello Hassan, emphasized the strategic importance of this revision. He stated, “The revised coverage is a strategic balance between protecting depositors and ensuring the stability of the financial system. These changes aim to extend protection to a larger percentage of the population, enhance financial inclusion, and mitigate the potentially destabilising effects of bank runs.”
Hassan also highlighted that the enhanced coverage is supported by solid financial backing from the NDIC’s deposit insurance funds, expected premium collections, and robust supervision and bank resolution frameworks as outlined in the NDIC Act No. 33 of 2023. He stressed the importance of this comprehensive financial infrastructure in maintaining depositor confidence and ensuring the stability of the financial system.
OPay’s statement further reinforced the importance of this strategic enhancement, noting that it aims not only to protect depositors but also to encourage market discipline among banks and mobile money operators (MMOs). The increased insured amount aims to prevent unnecessary risk-taking by financial institutions, thus reducing the potential for destabilising bank runs.
“OPay’s alignment with the NDIC’s revised insurance coverage standards underscores its dedication to safeguarding user funds and promoting financial stability. With this new level of insurance, OPay users can now have the same confidence in the security of their deposits as customers of other commercial banks. This move contributes significantly to a more inclusive and resilient financial ecosystem in Nigeria,” the company stated.
Founded in 2018, OPay aims to make financial services more inclusive through technology. The company offers a wide range of payment services, including money transfer, bill payment, airtime and data purchase, card services, and merchant payments, among others. Licensed by the Central Bank of Nigeria (CBN) and insured by the NDIC, OPay is committed to maintaining the highest standards of financial security for its users.
