One of the leading financial technology companies in Nigeria, OPay, has reassured its customers that their deposits are now insured up to N5m, which is the industry standard by the Nigeria Deposit Insurance Corporation, NDIC.
According to a statement from OPay on Sunday, this not only underscored its commitment to financial security but also aligned it with the standards enjoyed by depositors of other commercial banks in the country.
In May, the NDIC announced an increase in the maximum deposit insurance coverage from N500,000 to N5,000,000 per subscriber of a mobile money operator. This adjustment provides a substantial safety net for OPay users, ensuring their funds are protected to a much greater extent.
The Managing Director/Chief Executive Officer of NDIC, Mr Bello Hassan, at the press conference announcing the increase, said, “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.”
He added that the enhanced coverage was underpinned by solid financial backing from the NDIC’s deposit insurance funds, anticipated premium collections, and robust supervision and bank resolution frameworks as outlined in the NDIC Act No. 33 of 2023.
Hassan emphasised that this comprehensive financial infrastructure is essential for maintaining depositor confidence and ensuring the stability of the financial system.
OPay said, “This strategic enhancement not only aims to protect depositors but also encourages market discipline among banks and MMOs. By increasing the insured amount, the NDIC seeks to prevent unnecessary risk-taking by financial institutions, thereby 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.”
OPay, established in 2018 to make financial services more inclusive through technology, offers a wide range of payment services, including money transfer, bill payment, airtime & data purchase, card service, and merchant payments, among others.
OPay is licensed by the CBN and insured by the NDIC with the same insurance coverage as other commercial banks.
NDIC insures depositors’ funds up to N5m, OPay reassures customers
