OPay has announced a significant enhancement in financial security for its users: all funds are now insured up to 5 million Naira under the Nigeria Deposit Insurance Corporation (NDIC). This development demonstrates OPay’s commitment to financial safety, aligning it with the protection standards of other commercial banks.
The NDIC has raised the maximum pass-through deposit insurance coverage from 500,000 Naira to 5,000,000 Naira per subscriber per mobile money operator (MMO). This increase provides a robust safety net for OPay users, ensuring enhanced protection for their funds.
Mr. Hassan, a spokesperson for the NDIC, emphasized the strategic importance of this update. “The revised coverage strikes a balance between protecting depositors and maintaining financial system stability. These changes aim to extend protection to a larger portion of the population, enhance financial inclusion, and mitigate the risks of bank runs,” he explained.
This enhanced coverage is supported by the NDIC’s Deposit Insurance Funds (DIFs), anticipated premium collections, and rigorous supervision and bank resolution frameworks as stipulated in the NDIC Act No. 33 of 2023. Mr. Hassan highlighted that this comprehensive financial infrastructure is crucial for maintaining depositor confidence and financial system stability.
The strategic enhancement not only protects depositors but also promotes market discipline among banks and MMOs. By increasing the insured amount, the NDIC aims to deter risky behavior by financial institutions, thereby reducing the potential for destabilizing bank runs.
OPay’s adherence to the NDIC’s revised insurance coverage standards underscores its dedication to protecting 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 significantly contributes to a more inclusive and resilient financial ecosystem in Nigeria.
About OPay
Established in 2018, OPay is a leading financial institution in Nigeria, aiming to make financial services more inclusive through technology. The company offers a wide range of payment services, including money transfers, bill payments, airtime and data purchases, card services, and merchant payments. Renowned for its fast service and reliable network, OPay is licensed by the CBN and insured by the NDIC with the same coverage as other commercial banks.