Yemisi Izuora
Much as the Nigeria Deposit Insurance Corporation (NDIC) is maintaining strong
collaboration with the Central Bank of Nigeria (CBN) to ensure banking sector
stability, a multi-layer protection mechanism is also in place to ensure depositors funds are protected.
The Managing Director and Chief Executive Officer (MD/CEO) of the Corporation, Mr. Thompson Oludare Sunday, who gave the assurances at special day of the NDIC at the 2025 Lagos International Trade Fair, said NDIC-CBN partnership aims at enforcing regulatory compliance, and ensure effective oversight of deposittaking institutions, adding, “Our tagline, “Protecting Your Bank Deposits,” reflects our commitment to financial inclusion and stability, reassuring Nigerians that their savings are secure.”
Sunday, commended the organisers of the fair, saying the platform has consistently promoted trade and investment, showcased innovation, informed the public about developments in the financial sector, and contributed significantly to economic growth.
The theme of this year’s Fair aligns closely with the public policy objectives and
mandate of the Nigeria Deposit Insurance Corporation (NDIC), he said adding, For the past 36 years, the NDIC has served as a vital component of Nigeria’s financial safety-net, playing a pivotal role in promoting the stability of the banking system by providing a strong and consistent layer of protection for depositors’ funds.
According to him, There is no gainsaying that a stable banking system is an indispensable pillar that sustains business connectivity and enables value creation, pointing, “Our mandate is clear: to guarantee depositors’ funds, supervise banks, resolve distressed insured institutions, and liquidate failed banks.
He continued by saying that the NDIC, has made significant progress in enhancing depositor protection, particularly through increased deposit insurance coverage.
Currently, the NDIC insures depositors of Deposit Money Banks (DMBs), Mobile Money Operators (MMOs), and Non-Interest Banks (NIBs) up to ₦5,000,000 per depositor while for Payment Service Banks (PSBs), Microfinance Banks (MFBs), and Primary Mortgage Banks (PMBs), the coverage is ₦2,000,000.
“With this expanded coverage, approximately 99% of depositors are covered, demonstrating our unwavering commitment to deepening public confidence in the banking system.” he said.
In the rare event of a bank failing, depositors, whose balances exceed the
insured limit, will receive an initial payment up to the insured amount, with the remaining balance paid through liquidation dividends. These dividends are distributed from the proceeds of the failed bank’s assets on a pro-rata basis,
ensuring fairness and transparency.
Sunday, added, “It is important to emphasize that the safety of bank deposits is a shared responsibility among banks, regulators, and indeed depositors. Depositors must ensure that their account information is up-to-date, including linking their Bank Verification Number (BVN) to all accounts. They must also protect their account details to prevent unauthorized access.”
To facilitate prompt reimbursement in the unlikely event of a bank failure,
depositors are advised to maintain an alternate account in another bank with
matching personal information and ensure that their BVN is linked to all such
accounts.
He urged depositors to promptly report any suspected irregularities in their
accounts to their banks. Banks are required to resolve such issues within two (2)
weeks, stressing, “If unresolved or unsatisfactorily done, complaints should be escalated to the NDIC or the CBN through the appropriate channels.
According to him, The responsibility for a safe, sound, and stable financial system is collective.
He called on all depositors and stakeholders to remain vigilant and
proactive in fulfilling their roles. At the NDIC, we remain committed to promoting
financial system stability and inclusion.