The Nigerian Deposit Insurance Corporation (NDIC) has assured depositors of timely access to their funds in the event of bank failure, while reaffirming its commitment to strengthening measures aimed at reducing the incidence of distressed financial institutions in the country.
Managing Director of the NDIC, Mr Thompson Oludare Sunday, gave the assurance during the Corporation’s Day at the 47th Kaduna International Trade Fair, stating that the agency has continued to improve its payout processes to guarantee swift compensation for depositors of failed banks.
Represented by the Assistant Director, Communication and Public Affairs, Mrs Regina Dimlong, Sunday said the Corporation’s commitment was demonstrated in the prompt payment of depositors of defunct institutions, including Heritage Bank Limited, Union Homes Plc, and Aso Savings and Loans Plc.
He explained that the NDIC leveraged the Bank Verification Number (BVN) as a unique identifier to trace depositors’ alternative bank accounts, enabling insured deposits to be credited directly.
“This enabled the payment of claims within days of the banks’ closure. I therefore urge all depositors to ensure their BVNs are properly linked to their bank accounts and identity records, as this greatly facilitates seamless and timely access to insured deposits in the event of bank failure,” he said.
Sunday further disclosed that the Corporation works closely with the Central Bank of Nigeria (CBN) to strengthen oversight of insured deposit-taking institutions through enhanced risk-based supervision, resolution planning, and inter-agency collaboration.
“Our strategy increasingly emphasises strengthened risk-based supervision, resolution planning, and inter-agency collaboration to minimise systemic disruptions and protect depositors more effectively,” he added.
He noted that the Corporation’s tagline, “Protecting Your Bank Deposits,” reflects its longstanding commitment to financial stability and inclusion, reassuring Nigerians of the safety of their savings.
According to him, the NDIC in 2024 increased its maximum deposit insurance coverage to further protect depositors. Under the revised framework, depositors of Deposit Money Banks (DMBs), Mobile Money Operators (MMOs), and Non-Interest Banks (NIBs) are insured up to ₦5 million, while those in Payment Service Banks (PSBs), Microfinance Banks (MFBs), and Primary Mortgage Banks (PMBs) are covered up to ₦2 million.
He said the expanded coverage now protects about 99 per cent of depositors, underscoring the Corporation’s commitment to safeguarding Nigerians’ savings.
Sunday added that for over three decades, the NDIC has played a critical role in protecting depositors’ funds — particularly those of vulnerable groups — while contributing to the stability of the financial system.
“Our mandate includes deposit guarantees, bank supervision, distress resolution, and the liquidation of failed banks,” he said.
He explained that in the event of bank failure, depositors are paid up to the insured limit, while those with balances above the threshold receive additional compensation through liquidation dividends after the realisation of the failed bank’s assets and recovery of outstanding debts.
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