NDIC Covers 99% of Depositors, Pushes for BVN Linkage

The Nigeria Deposit Insurance Corporation (NDIC) has said that about 99 per cent of depositors in Nigerian banks are fully covered under its enhanced deposit insurance scheme, urging customers to link their Bank Verification Numbers to their accounts to guarantee seamless access to insured deposits in the event of bank failure.

The Managing Director/Chief Executive Officer of NDIC, Thompson Oludare, disclosed this on Wednesday at the NDIC Special Day of the 47th Kaduna International Trade Fair, held in Kaduna.

The trade fair, organised by the Kaduna Chamber of Commerce, Industry, Mines and Agriculture, had as its theme, “From Reforms to Results: Economic Transformation through Sustained Local Content Development.”

Represented by Dr Regina Dinlung, Assistant Director, Communication and Public Affairs Department, Oludare said the theme aligned with ongoing reforms in the financial sector aimed at delivering tangible benefits to Nigerians.

“For over three decades, the Nigeria Deposit Insurance Corporation has played a critical role in protecting depositors’ funds, particularly those of the most vulnerable, from the negative effects of bank failure,” he said.

Highlighting the corporation’s mandate, Oludare explained that it encompasses deposit insurance, supervision of insured institutions, distress resolution, and the orderly liquidation of failed banks.

According to him, NDIC works closely with the Central Bank of Nigeria to strengthen risk-based supervision, resolution planning, and inter-agency collaboration to safeguard the banking system and minimise systemic disruptions.

“Our tagline, ‘Protecting Your Bank Deposits,’ reflects our enduring commitment to financial inclusion and stability, reassuring Nigerians that their savings are safe,” he stated.

Oludare disclosed that in 2024, the corporation enhanced the maximum deposit insurance coverage as part of efforts to strengthen depositor protection and public confidence.

He said depositors of Deposit Money Banks, Mobile Money Operators, and Non-Interest Banks are currently insured up to ₦5m per depositor per bank, while those of Payment Service Banks, Microfinance Banks, and Primary Mortgage Banks are covered up to ₦2m per depositor per bank.

“This expanded coverage protects about 99 per cent of depositors, underscoring our commitment to safeguarding the savings of Nigerians,” he said.

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 bank are realised.

Citing recent interventions, Oludare referenced the closures of Heritage Bank Limited, Union Homes Plc, and Aso Savings and Loans Plc as examples of improved payout efficiency.

“In those instances, the corporation used the Bank Verification Number of depositors as a unique identifier to locate their alternate accounts into which their claims were transferred. This enabled the payment of claims within days of the banks’ closure,” he said.

“I therefore urge all depositors to ensure that their BVNs are properly linked to their bank accounts and identity records, as this greatly facilitates seamless and timely access to insured deposits in the event of bank failure,” he added.

Oludare also invited participants at the trade fair to visit the corporation’s pavilion to obtain information on deposit insurance and how to avoid fraudulent schemes.

He reaffirmed the NDIC’s commitment to evolving into a more responsive and technology-driven deposit insurer that not only resolves bank failures effectively but also works to prevent them and strengthen public trust in Nigeria’s financial system.

Earlier, the President of the Kaduna Chamber of Commerce, Industry, Mines and Agriculture, Alhaji Farouk Suleiman, commended the corporation’s role in safeguarding depositors’ funds, noting that it remained critical at a time when economic confidence and institutional trust were under pressure.

“We are delighted to host one of Nigeria’s most critical financial sector institutions, an institution whose work often operates quietly behind the scenes, yet whose impact is felt profoundly across the economy,” he said.

According to him, NDIC’s participation in the fair underscored its commitment not only to regulation but also to public enlightenment and stakeholder engagement.