By Kingsley Bensons
The Nigeria Deposit Insurance Corporation (NDIC) has reaffirmed that the vast majority of bank customers in the country are fully protected against bank failure, as it intensifies public awareness and enforcement measures aimed at strengthening confidence in the financial system. According to the corporation, about 99 percent of depositors in Nigerian banks are covered under its enhanced deposit insurance framework, a safeguard it says remains effective only when depositors properly link their Bank Verification Numbers (BVNs) to their accounts.
The disclosure was made by the Managing Director/Chief Executive Officer of the NDIC, Mr. Thompson Oludare, at the NDIC Special Day of the 47th Kaduna International Trade Fair. The event, organised by the Kaduna Chamber of Commerce, Industry, Mines and Agriculture, provided a platform for the corporation to engage directly with the public on depositor protection and financial stability.
Represented at the event by Dr Regina Dinlung, Assistant Director in the Communication and Public Affairs Department, Mr. Oludare said the theme of the fair, ‘From Reforms to Results: Economic Transformation through Sustained Local Content Development,’ mirrors ongoing reforms in the financial sector designed to deliver tangible benefits to Nigerians.
He noted that for more than three decades, the NDIC has played a critical role in protecting depositors, particularly small and vulnerable savers, from the consequences of bank failures. According to him, the corporation’s mandate goes beyond deposit insurance to include the supervision of insured institutions, resolution of distressed banks, and the orderly liquidation of failed ones.
Mr. Oludare explained that the NDIC works closely with the Central Bank of Nigeria (CBN) to strengthen risk-based supervision, improve resolution planning, and deepen inter-agency collaboration. These measures, he said, are aimed at safeguarding the banking system and minimising systemic disruptions that could undermine economic confidence.
“Our tagline, ‘Protecting Your Bank Deposits,’ reflects our enduring commitment to financial inclusion and stability,” he said, stating that the corporation’s priority is to reassure Nigerians that their savings are safe within the regulated financial system.
As part of efforts to strengthen depositor confidence, the NDIC enhanced its maximum deposit insurance coverage in 2024. Under the revised framework, depositors of Deposit Money Banks, Mobile Money Operators, and Non-Interest Banks are insured up to N5 million per depositor per bank. Customers of Payment Service Banks, Microfinance Banks, and Primary Mortgage Banks are covered up to N2 million per depositor per bank.
According to Mr. Oludare, the expanded coverage now protects about 99 percent of depositors nationwide. He explained that in the event of a bank failure, insured depositors are paid promptly up to the guaranteed limit, while those with balances above the insured threshold receive liquidation dividends as assets of the failed institution are realised.
He cited recent bank closures, including Heritage Bank Limited, Union Homes Plc, and Aso Savings and Loans Plc, as examples of improved payout efficiency. In those cases, the NDIC relied on depositors’ Bank Verification Numbers as unique identifiers to trace alternate accounts into which claims were paid. This, he said, enabled the settlement of insured deposits within days of the banks’ closure.
Mr. Oludare urged depositors to ensure that their BVNs are properly linked to their bank accounts and identity records. According to him, BVN linkage is critical to guaranteeing seamless and timely access to insured deposits whenever a bank fails.
Beyond depositor protection, the corporation is also tightening its stance on debt recovery from failed banks. Mr. Oludare disclosed that the NDIC will fully deploy its enhanced enforcement powers under the NDIC Act 2023 to recover outstanding loans from debtors whose actions contributed to bank failures.
This position was restated at a sensitisation seminar for Debt Recovery Agents in Lagos, where the corporation outlined how the new law empowers it to take interim custody of movable and immovable assets belonging to obligors of failed banks. The Act also authorises the NDIC to freeze funds of such obligors held in any insured institution.
Represented at the seminar by the Director of the Legal Department, Olufemi Kushimo, Oludare warned that the culture of loan default and prolonged litigation used to delay repayments will no longer be tolerated. He said the corporation intends to apply every relevant provision of the Act to hold culpable parties accountable.
According to the NDIC, the strengthened enforcement tools are designed to bypass long-standing obstacles such as repeated court adjournments and entrenched default practices that have historically slowed liquidation processes. The ultimate objective is to accelerate the payment of liquidation dividends to depositors and restore confidence in the banking system.
The Director of the Asset Management Department, Patricia Okosun, said the new framework has significantly improved the corporation’s capacity to recover debts, even though legal realities make it difficult to fix rigid timelines for all payments. She noted that faster recovery directly translates to quicker reimbursement of depositors.
Earlier at the Kaduna trade fair, the President of the Kaduna Chamber of Commerce, Industry, Mines and Agriculture, Alhaji Farouk Suleiman, commended the NDIC’s role in safeguarding depositors’ funds. He described the corporation as a critical institution whose work often goes unnoticed but whose impact is deeply felt across the economy.
Taken together, the NDIC’s renewed focus on depositor awareness, BVN linkage, and aggressive debt recovery signals a broader shift toward accountability and transparency in the financial system. As economic confidence remains under pressure, the corporation’s message is clear. Depositors are largely protected, but system integrity depends on compliance, enforcement, and shared responsibility.
