NDIC Advocates Early Financial Literacy for Youths

The Nigeria Deposit Insurance Corporation has called for increased financial literacy among Nigerian youth, equipping them with the knowledge and tools necessary to make informed financial decisions and build long-term financial security.

Speaking during the Financial Literacy Day 2025 outreach to students of Government Secondary School Kuchingoro in Abuja as part of Global Money Week activities, NDIC officials emphasised the importance of early education on savings, budgeting, responsible spending, and investment.

The Senior Manager in the Insurance and Surveillance Department of the NDIC, Madina Mustapha, highlighted the Corporation’s statutory mandate and its role in promoting public confidence in the banking system.

According to her, “The NDIC was established not just to insure depositors’ funds but also to protect the entire financial system through effective supervision, failure resolution, and consumer education.”

She explained that the NDIC provides deposit insurance cover to depositors of licensed deposit-taking institutions, including commercial, microfinance, and non-interest banks, with coverage limits designed to protect the majority of small depositors.

“The rationale for our existence includes protecting depositors, particularly the small and less financially literate ones, promoting sound risk management practices, and ensuring the stability of the financial system,” she said.

Also speaking, the Manager at the Bank Examination Unit, Ada Madu, reiterated the importance of financial literacy among young Nigerians.

She noted that the lack of basic financial education was one of the leading causes of poor money management and economic vulnerability.

“Financial literacy is essential for making sound decisions about earning, saving, investing, and spending,” she said. “It empowers young people to manage their resources wisely, avoid debt traps, and plan for the future.”

The presentation exposed students to key concepts such as budgeting, the importance of distinguishing between wants and needs, and understanding different savings accounts – including current, savings, and fixed deposit accounts. It also covered the basics of investing, highlighting stocks, bonds, and treasury bills as viable options for long-term wealth creation.

A section of the outreach was dedicated to discussing the Central Bank of Nigeria’s cashless policy and how it is transforming financial transactions through digital platforms.

Students were encouraged to adopt safe and efficient financial practices in line with the evolving digital economy.

The officials stressed that the NDIC’s approach goes beyond its supervisory functions, by also focusing on strengthening financial literacy as a tool to promote inclusive growth and economic resilience.

The corporation’s financial literacy efforts are part of its broader goal of reaching young Nigerians in schools, equipping them with the ability to navigate financial challenges and actively contribute to Nigeria’s economic development.