The Nigeria Deposit Insurance Corporation (NDIC) has reaffirmed its commitment to ensuring the prompt reimbursement of depositors in the event of bank failures, citing significant improvements in its claims settlement framework.
The Managing Director and Chief Executive Officer of the Corporation, Thompson Oludare, gave the assurance at a Depositors’ Town Hall Meeting, where he disclosed that the NDIC has strengthened its payout architecture to eliminate delays and reinforce public confidence in the banking system.
Represented by the Director of Banking Supervision, Olukoya Adeyinka, Oludare stated that the Corporation has refined its reimbursement processes to ensure insured depositors receive their funds within the shortest possible time following the closure of any financial institution.
He referenced the recent settlement of insured deposits to customers of the defunct Heritage Bank Limited, Union Homes Savings and Loans Plc, and other closed institutions as evidence of the enhanced system.
“In those cases, we utilised the Bank Verification Number (BVN) as a unique identifier to trace depositors’ alternate accounts into which their insured sums were transferred. This enabled payments to be completed within days of the banks’ closure,” he said.
According to him, the deployment of the BVN has significantly reduced verification bottlenecks, accelerated the claims process, and ensured faster access to funds. He urged bank customers to properly link their accounts to their BVN to facilitate seamless reimbursement if a bank fails.
Oludare emphasised that beyond its supervisory and liquidation functions, the NDIC’s core mandate remains the protection of depositors’ hard-earned savings.
“Protecting your bank deposits is more than a slogan for us; it is a firm commitment to ensuring depositors can access their savings when it matters most,” he added.
The town hall meeting drew representatives from the Central Bank of Nigeria, deposit money banks, civil society organisations, academia, the National Insurance Commission, and the Securities and Exchange Commission.
Participants discussed deposit protection, financial literacy, and consumer rights, with interactive sessions providing stakeholders the opportunity to share experiences and explore best practices for safeguarding depositor funds.
The Corporation also highlighted recent reforms aimed at strengthening depositor confidence, including the upward review of deposit insurance coverage. In 2024, the maximum insured limit for depositors of Deposit Money Banks was increased to N5 million, while coverage for Microfinance Banks, Primary Mortgage Banks, and Payment Service Banks was raised to N2 million.
According to the NDIC, the enhanced coverage now fully protects about 99 per cent of depositors nationwide, with only a small percentage holding balances above the insured threshold. Under the current framework, depositors with balances within the insured limit are reimbursed promptly once a bank’s licence is revoked. Those with balances exceeding the insured ceiling receive the insured portion immediately, while outstanding amounts are paid as liquidation dividends upon the realisation of the failed bank’s assets and debt recovery.
Also speaking at the event, Ibrahim Tuggar of the Consumer Protection and Financial Inclusion Department underscored the importance of safeguarding personal and financial information.
“Customers must take active steps to protect their BVN, payment cards, cheques, and other financial instruments. Many fraud cases occur when sensitive information is shared or misused, often unknowingly. Education and awareness are critical in preventing such incidents,” he said.
He added that informed consumers, transparent banking practices, prudent financial management, and secure financial systems are essential pillars of a resilient banking sector.
