NDIC assures depositors on prompt payout, urges BVN compliance

The Nigeria Deposit Insurance Corporation (NDIC) has reassured depositors of the safety of their funds, urging them to ensure their Bank Verification Numbers (BVNs) were properly linked to their accounts.

The Executive Director, Corporate Services, NDIC, Mrs Emily Osuji, stated this on Monday in Kano at the NDIC Stakeholders’ Town Hall Meeting.

Osuji emphasised that proper BVN linkage would facilitate seamless verification and prompt payment of insured deposits in the event of bank failure.

She also highlighted its enhanced coverage and improved processes, aimed at strengthening public confidence in the banking system and ensuring timely settlement of claims.

Osuji said the forum was organised to address persistent misconceptions among members of the public about the scope, benefits and limitations of deposit insurance in Nigeria.

She explained that many depositors were still unclear about what deposits were covered, procedures to follow when a bank’s licence was revoked and how reimbursements were carried out.

According to her, the town hall meeting serves as a platform to empower depositors with practical knowledge on how their funds are protected and how the corporation contributes to financial system stability.

Osuji said the NDIC discharges its responsibilities through its core mandates of deposit guarantee, bank supervision, distress resolution and bank liquidation, all aimed at protecting depositors’ savings.

She reaffirmed the corporation’s commitment to depositor protection, stating that the NDIC’s slogan, ‘Protecting your bank deposits!’, reflected its resolve to ensure depositors have access to their funds in the event of bank failure.

The executive director recalled that the corporation increased maximum deposit insurance coverage in 2024 to further strengthen depositors’ protection.

She said depositors of Deposit Money Banks, Mobile Money Operators and Non-Interest Banks were now insured up to N5 million, while those of Microfinance Banks, Primary Mortgage Banks and Payment Service Banks were covered up to N2 million.

Osuji explained that in the event of bank failure, depositors were paid promptly up to the insured limit, while balances above the limit were paid as liquidation dividends after the realisation of assets and recovery of debts.

Osuji also cited the prompt reimbursement of depositors of the defunct Heritage Bank Limited, Union Homes Plc and Aso Savings and Loans Plc, where claims were paid within days using depositors’ Bank Verification Numbers (BVN).

Earlier, Mr Ahmad Umar, Controller of NDIC Kano Zonal Office, said the Corporation safeguards depositors’ funds and ensures prompt payment of insured deposits in the event of bank failure, while recovering additional funds for amounts above the insured limit.

“The Town Hall, part of NDIC’s stakeholder engagement across Kano, Enugu, and Lagos, provided a platform for addressing concerns and clarifying deposit insurance,” he said.

Also speaking, Hawwau Gambo, Head of Communication and Public Affairs , said the meeting was prompted by recent banking sector developments, including the revocation of some bank licences and ongoing capitalization efforts, which have heightened public interest and misconceptions about deposit insurance.

Gambo emphasised that financial stability and consumer protection were shared responsibilities and urged robust participation, constructive dialogue, and feedback to strengthen NDIC’s public awareness initiatives.