The Nigeria Deposit Insurance Corporation (NDIC) has reassured depositors of the safety of their funds, urging bank customers to ensure their Bank Verification Numbers (BVNs) are properly linked to their accounts to enable prompt payment in the event of bank failure.
The Executive Director, Corporate Services, Mrs. Emily Osuji, gave the assurance on Monday in Kano during the NDIC Stakeholders’ Town Hall Meeting.
Osuji said proper BVN linkage remained critical to seamless verification and speedy reimbursement of insured deposits whenever a bank’s licence is revoked.
She explained that the town hall meeting was organised to address widespread misconceptions among the public regarding the scope, benefits and limitations of deposit insurance in Nigeria.
According to her, many depositors still lack adequate understanding of which deposits are insured, the procedures to follow after a bank closure, and how reimbursements are processed.
“The town hall provides an opportunity to educate depositors on how their funds are protected and how the NDIC contributes to the stability of the financial system,” Osuji said.
She noted that the NDIC carries out its mandate through deposit guarantee, bank supervision, distress resolution and liquidation, all aimed at safeguarding depositors’ savings.
Osuji reaffirmed the Corporation’s commitment to depositor protection, stressing that the NDIC’s slogan – ‘Protecting your bank deposits!’ – reflects its resolve to ensure depositors have timely access to their insured funds.
She recalled that in 2024, the NDIC increased the maximum deposit insurance coverage to further strengthen public confidence in the banking system.
According to her, depositors of Deposit Money Banks, Mobile Money Operators and Non-Interest Banks are now insured up to ₦5 million, while those of Microfinance Banks, Primary Mortgage Banks and Payment Service Banks are covered up to ₦2 million.
She explained that insured deposits are paid promptly once a bank fails, while balances above the insured limit are settled later as liquidation dividends after asset realisation and debt recovery.
Osuji cited the recent reimbursement of depositors of the defunct Heritage Bank Limited, Union Homes Plc, and Aso Savings and Loans Plc, noting that payments were completed within days using BVN-based verification.
Earlier, the Controller of the NDIC Kano Zonal Office, Mr. Ahmad Umar, said the Corporation ensures prompt payment of insured deposits while pursuing recovery of additional funds for depositors with balances above the insured limit.
Also speaking, Hawwau Gambo, Head of Communication and Public Affairs, said the town hall was necessitated by recent banking sector developments, including licence revocations and recapitalisation efforts, which have heightened public interest and misinformation about deposit insurance.
She urged depositors to engage constructively and provide feedback to strengthen NDIC’s public awareness and financial stability initiatives.
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