The Nigeria Deposit Insurance Corporation (NDIC) has reiterated its commitment to ensuring prompt access to depositors’ funds in the event of a bank failure, following significant improvements to its claims settlement process.
Speaking at a Depositors’ Town Hall Meeting in Lagos on Saturday, the Managing Director/Chief Executive Officer of the Corporation, Thompson Oludare, said the NDIC had enhanced its payout framework to eliminate delays and bolster public confidence in the banking system.
According to him, the Corporation has refined its reimbursement procedures to ensure that insured depositors are paid as quickly as possible after the closure of any financial institution.
He noted that the strengthened system was demonstrated in the recent payment of insured sums to depositors of the defunct Heritage Bank Limited, Union Homes Savings and Loans Plc, and other closed institutions.
“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 made within days of the banks’ closure,” he said.
Oludare explained that the use of the BVN has significantly reduced verification bottlenecks, accelerating the claims process and ensuring quicker access to funds. He urged depositors to ensure their accounts are properly linked to their BVN to facilitate seamless reimbursement in the event of bank failure.
He stressed that the NDIC’s mandate extends beyond supervision and liquidation, noting that safeguarding depositors’ funds remains its core responsibility.
“Protecting your bank deposits is more than a slogan for us; it is a firm commitment to ensuring that depositors have access to their savings when it matters most,” he said.
The town hall meeting was attended by representatives of the Central Bank of Nigeria (CBN), deposit money banks, civil society organisations, academia, the National Insurance Commission (NAICOM), and the Securities and Exchange Commission (SEC).
Papers were presented on deposit protection, financial literacy, and consumer rights, followed by interactive sessions where participants shared experiences and discussed best practices for safeguarding depositor funds.
As part of reforms aimed at strengthening public confidence, the NDIC in 2024 raised the maximum deposit insurance coverage. The 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.
The Corporation stated that the enhanced coverage now fully protects about 99 per cent of depositors in Nigeria, with only a small proportion holding balances above the insured threshold.
Under the existing 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. In contrast, the outstanding balance is paid as liquidation dividends upon the realisation of the failed bank’s assets and recovery of debts.
Also speaking, Ibrahim Tuggar of the Consumer Protection and Financial Inclusion Department underscored the need for customers to safeguard their personal and financial information.
He advised depositors to take proactive steps to secure their BVN, payment cards, cheques, and other financial instruments, warning that many fraud incidents occur when sensitive information is shared or misused, often unknowingly.
According to him, sustained public sensitisation and financial education are critical to building a resilient banking system.
“The combination of informed consumers, transparent fees, prudent financial management, and secure financial practices forms the foundation of a resilient banking system. Ongoing education and vigilance are essential to ensure that both individuals and institutions operate safely and effectively within Nigeria’s financial ecosystem,” he said.
Nume Ekeghe
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