OPay, a leading financial technology company in Nigeria, has reassured its customers that their deposits are now insured up to ₦5 million, in line with the industry standard set by the Nigeria Deposit Insurance Corporation (NDIC). This update emphasizes OPay’s commitment to financial security and aligns its deposit protection standards with those of other commercial banks in the country.
In May, the NDIC announced an increase in the maximum deposit insurance coverage from ₦500,000 to ₦5,000,000 per subscriber for mobile money operators. This adjustment significantly enhances the safety net for OPay users, providing greater protection for their funds.
At a press conference announcing the increase, NDIC’s Managing Director/Chief Executive Officer, Mr. Bello Hassan, 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 further explained that the enhanced coverage is supported by 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. He emphasized the importance of this comprehensive financial infrastructure in maintaining depositor confidence and ensuring financial system stability.
OPay commented, “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.”
The fintech company highlighted that its alignment with the NDIC’s revised insurance coverage standards demonstrates its dedication to safeguarding user funds and promoting financial stability. With the new level of insurance, OPay users can have the same confidence in the security of their deposits as customers of other commercial banks. This move significantly contributes to a more inclusive and resilient financial ecosystem in Nigeria.
Established in 2018, OPay aims to make financial services more inclusive through technology. It offers a wide range of payment services, including money transfer, bill payment, airtime and data purchase, card services, and merchant payments. Licensed by the Central Bank of Nigeria (CBN) and insured by the NDIC, OPay ensures its users benefit from the same deposit insurance coverage as other commercial banks.
