NDIC decries gap between rich and poor, says 2% own 90% bank deposits

The Nigeria Deposit Insurance Corporation, NDIC, has said that 2% of Nigerians own 90% of total deposits in Nigerian banks, indicating the widespread inbalance in wealth distribution in the country.

This was disclosed by the Director, Research and International Relations of the NDIC, Alhaji Mohammed Umar, at the Businessday Capital Market Development Annual Conference held in Abuja on Wednesday.

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According to Umar, there had been complains that the current deposit insurance coverage of N500, 000 for the Deposit Money Banks is too low. This he however said is very adequate for the majority of accounts.

“It will interest you to know that it covers over 90 per cent of accounts in the country. Indeed, Nigerians who have more than N500, 000 in their accounts are just two per cent.

“What we found is that this two per cent Nigerians have 90 per cent of banks’ total deposits. Look at that – two per cent Nigerians own 90 per cent of total banks deposits, while the remaining 98 per cent have just 10 per cent of total deposits.  What that tells you is that the gap between the rich and the poor has continued in this country.”

Umar further stated that there were about 70 million bank account holders in the country.

Also speaking at the conference, the Director-General of the Securities and Exchange Commission, SEC, Mr. Mounir Gwarzo, called on Pension Fund Administrators, PFAs, to invest more in the nation’s capital market, with a view to deepening it and ensuring better returns on contributor’s funds.

He said: “Deepening Nigeria’s Capital Market through Maximum Utilization of Pension Funds is a conversation our country must continue to have in order to ensure that the impressive pool of savings we have been able to mobilize over the last decade is put to productive use for inclusive economic growth.

“We are confident that with greater participation by PFAs and return of retail investors, our capital market will emerge as one of the world’s biggest and most liquid market capable of supporting the socio-economic development of our country.”

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