NDIC Assures Depositors Of Prompt Payout As Claims Process Improves

The Nigeria Deposit Insurance Corporation has reaffirmed its resolve to guarantee prompt reimbursement to depositors in the event of bank failures, following what it described as major improvements in its claims settlement framework.
The managing director and chief executive officer of the Corporation, Thompson Oludare, gave the assurance at a Depositors’ Town Hall Meeting, where he disclosed that the NDIC has strengthened its payout architecture to eliminate delays and boost public confidence in the banking system.

According to him, the Corporation has continued to refine its reimbursement processes to ensure insured depositors receive their funds within the shortest possible time after the closure of any financial institution.
Oludare who was represented by the director, Banking Supervision department, NDIC, Olukoya Adeyinka, pointed to the recent payment of insured deposits to customers of the defunct Heritage Bank Limited and Union Homes Savings and Loans Plc, as well as other closed institutions, as evidence of the improved system.
“In those cases, we utilised the Bank Verification Number as a unique identifier to trace depositors alternate accounts into which their insured sums were transferred. This enabled payments to be made within days of the banks’ closure,” he said.

He explained that the deployment of the Bank Verification Number has significantly reduced verification bottlenecks, accelerating the claims process and ensuring that funds reach depositors without unnecessary delays. He urged bank customers to ensure their accounts are properly linked to their BVN to guarantee seamless access to their funds if a bank fails.

Oludare stressed that beyond its supervisory and liquidation responsibilities, the NDIC’s core mandate remains the protection of depositors’ hard earned savings. “Protecting your bank deposits is more than a slogan for us, it is a firm commitment to ensuring that depositors have access to their savings when it matters most,” he added.
The town hall meeting attracted representatives from the Central Bank of Nigeria, deposit money banks, civil society organisations, academia, the National Insurance Commission and the Securities and Exchange Commission.

Participants examined issues around deposit protection, financial literacy and consumer rights, with interactive sessions that provided an opportunity for stakeholders to share experiences and discuss best practices for safeguarding depositor funds.
The Corporation also highlighted recent reforms aimed at strengthening depositor confidence, including the upward review of deposit insurance coverage. In 2024, the maximum insured limit for depositors of Deposit Money Banks was increased to N5 million, while coverage for Microfinance Banks, Primary Mortgage Banks and Payment Service Banks was raised to N2 million.

According to the NDIC, the enhanced coverage now fully protects about 99 per cent of depositors in the country, with only a marginal percentage holding balances above the insured threshold. Under the existing framework, depositors with balances within the insured limit are reimbursed promptly once a bank’s licence is revoked. Those with balances exceeding the insured ceiling receive the insured portion immediately, while outstanding sums are paid as liquidation dividends upon the realisation of the failed bank’s assets and recovery of debts.
Also speaking, Ibrahim Tuggar of the Consumer Protection and Financial Inclusion Department underscored the need for customers to safeguard their personal and financial information. “Protecting personal and financial information is equally important. Customers should take active steps to secure their BVN, payment cards, checks, and other financial instruments.

“Many fraud cases occur when sensitive information is shared or misused, often unknowingly. Education and awareness are critical in preventing such incidents, and regulators and financial institutions must continuously engage in public sensitisation and consumer education.
“The combination of informed consumers, transparent fees, prudent financial management, and secure financial practices forms the foundation of a resilient banking system. Ongoing education and vigilance are essential to ensure that both individuals and institutions operate safely and effectively within Nigeria’s financial ecosystem.”