1. The Nigerian Deposit Insurance Corporation (NDIC) has increased the maximum deposit insurance coverage from ₦500,000 to ₦2,000,000 per depositor, per insured institution. This move is aimed at preventing banks from engaging in unnecessary risk-taking and moral hazard behavior, as the higher coverage will provide more protection for depositors and instill confidence in the banking system.

2. The NDIC's Managing Director, Bello Hassan, stated that the increased coverage will ensure that the majority of depositors are fully protected, reducing the likelihood of bank runs and promoting financial stability. The higher limit also aligns with global best practices and the recommendations of the International Association of Deposit Insurers (IADI).

3. The article highlights that the NDIC's decision to raise the deposit insurance coverage is part of its ongoing efforts to strengthen the deposit insurance system and enhance the resilience of the Nigerian banking sector. This measure is expected to contribute to the overall stability and soundness of the financial system, benefiting both depositors and the broader economy.