By Kingsley Benson
T
he Nigeria Deposit Insurance Corporation (NDIC) has urged bank customers across the country to maintain alternate accounts in other financial institutions to ensure quick access to their funds if any bank comes under stress.
The guidance came from Mr. Thompson Oludare, Managing Director (MD)/ Chief Executive Officer (CEO) of the NDIC, who was represented by Mr. Kazeem Sule Olawale, Director of Claims Resolution, during the recent corporation’s Special Day at the 2025 Lagos International Trade Fair themed ‘Connecting Business, Creating Value.’
According to the NDIC chief, keeping an alternate account has become a practical safeguard for depositors and an important step in strengthening confidence in the financial system. He explained that the measure forms part of the corporation’s broader strategy to improve depositor protection and enhance system stability.
“It is important to emphasise that the safety of bank deposits is a shared responsibility among banks, regulators, and indeed depositors,” he said. “Depositors must ensure 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 unauthorised access.”
Mr. Oludare noted that having an alternate account – one that carries matching personal information and a linked BVN – allows the NDIC to make faster reimbursements in the unlikely event that a financial institution fails.
He also stressed the need for customers to take greater responsibility in safeguarding their records. Promptly reporting any unusual activity, he said, is essential to reducing risks. Banks are required to resolve customer complaints within two weeks; cases that remain unresolved after this period may be escalated to either the NDIC or the Central Bank of Nigeria (CBN).
The NDIC boss highlighted improvements in Nigeria’s deposit insurance framework as a major step toward deepening public trust. Depositors in Deposit Money Banks (DMBs), mobile money operators (MMOs), and non-interest banks (NIBs) are now insured up to N5 million per depositor, while the coverage for payment service banks (PSBs), microfinance banks (MFBs), and primary mortgage banks (PMBs) stands at N2 million.
“With this expanded coverage, approximately 99 percent of depositors are protected,” Mr. Oludare said. “This demonstrates our commitment to safeguarding the financial system and ensuring depositors have the confidence to do business.”
He stated that in the rare event of a bank failure, customers with balances above the insured limit would receive an initial payout up to the insured amount, while the remaining balance would be paid as liquidation dividends. These dividends are distributed from the sale of the failed bank’s assets on a pro-rata basis, ensuring fairness and transparency.
The NDIC boss reaffirmed that the corporation will continue updating its processes and public awareness efforts to ensure Nigerians understand their rights, protections, and responsibilities as depositors. Strengthening financial literacy, he said, remains at the heart of building a resilient banking system.
