Officials of the Nigerian Deposit Insurance Corporation (NDIC) have pledged to intensify efforts to curb incidences of bank failure in the country, while assuring depositors of timely access to their funds in any troubled financial institution.
The Managing Director of the NDIC, Thompson Oludare Sunday, gave the assurance during the Corporation’s Day at the 47th Kaduna International Trade Fair, noting that the agency has continued to enhance its payout processes to guarantee prompt compensation to depositors of failed banks.
Speaking through the Assistant Director, Communication and Public Affairs, Regina Dimlong, Sunday said the Corporation’s commitment was evident in the swift payment of depositors of the defunct Heritage Bank Limited, Union Homes Plc, and Aso Savings and Loans Plc.
According to him, the NDIC deployed the Bank Verification Number (BVN) of depositors as a unique identifier to trace their alternate bank accounts, into which their insured deposits were transferred.
“This enabled the payment of claims within days of the banks’ closure. I therefore urge all depositors to ensure that 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.
The NDIC boss further disclosed that the Corporation works closely with the Central Bank of Nigeria (CBN) to ensure effective oversight of insured deposit-taking institutions.
“Our strategy increasingly emphasizes strengthened risk-based supervision, resolution planning, and inter-agency collaboration to minimize systemic disruptions and protect depositors more effectively,” he added.
Sunday stressed that the Corporation’s tagline, “Protecting Your Bank Deposits,” reflects its enduring commitment to financial inclusion and stability, reassuring Nigerians that their savings are secure.
He noted that in line with this commitment, the NDIC enhanced its maximum deposit insurance coverage in 2024.
“Currently, the NDIC insures depositors of Deposit Money Banks (DMBs), Mobile Money Operators (MMOs), and Non-Interest Banks (NIBs) up to ₦5 million, while depositors of Payment Service Banks (PSBs), Microfinance Banks (MFBs), and Primary Mortgage Banks (PMBs) are covered up to ₦2 million.
“This expanded coverage protects about 99 per cent of depositors, underscoring our commitment to safeguarding the savings of Nigerians,” he said.
Sunday further explained that for over three decades, the NDIC has played a critical role in protecting depositors’ funds—particularly those of the most vulnerable—while contributing to the overall stability of the financial system.
“Our mandate encompasses deposit insurance coverage through deposit guarantees, bank supervision, distress resolution, and the liquidation of failed banks,” he said.
He added that in the event of bank failure, depositors are promptly paid up to the insured limit, while those with balances exceeding the insured amount are compensated through liquidation dividends after the realization of the bank’s assets and recovery of outstanding debts.
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