NDIC Urges Bank Customers To Link BVN For Faster Deposit Reimbursement

The Nigeria Deposit Insurance Corporation (NDIC) has urged bank customers to ensure their Bank Verification Number (BVN) is properly linked to their bank accounts to enable quick reimbursement of insured deposits in the event of bank failure.

The corproation’s executive director, Corporate Services, Mrs. Emily  Osuji, made the call yesterday in a keynote address at the NDIC Stakeholders’ Town Hall meeting held in Kano.

Osuji said the forum was part of NDIC’s renewed efforts to deepen stakeholder engagement, correct misconceptions surrounding the Deposit Insurance System (DIS), and promote public trust in the banking sector.

She observed that many depositors still lack adequate understanding of what the deposit insurance scheme covers, how reimbursements are processed when a bank’s licence is revoked, and the procedures customers are expected to follow when a financial institution is closed.

According to her, the town hall meeting provides an opportunity for the Corporation to address such gaps and empower depositors with practical knowledge on how their savings are protected.

“This forum provides us the opportunity to clarify these issues in practical terms and empower depositors with knowledge of how their funds are protected and how reimbursements are carried out,” Osuji said.

She reaffirmed NDIC’s statutory mandate in deposit guarantee, bank supervision, distress resolution and liquidation, stressing that the Corporation remains committed to safeguarding depositors’ funds and ensuring stability of the financial system.

Osuji highlighted the 2024 increase in maximum deposit insurance coverage, noting that depositors of Deposit Money Banks, Mobile Money Operators and Non-Interest Banks are now insured up to N5 million, while customers of Microfinance Banks, Primary Mortgage Banks and Payment Service Banks are covered up to N2 million.

She explained that the enhanced coverage protects about 99 per cent of depositors, especially small savers, while supporting financial inclusion.

Osuji added that NDIC has strengthened its payout process, citing the prompt settlement of depositors of defunct Heritage Bank Limited, Union Homes Plc and Aso Savings and Loans Plc through the BVN platform, which enabled insured sums to be transferred to alternate accounts within days of closure.

In his remarks, Controller of NDIC Kano Zonal Office, Mr. Ahmad Umar, said Kano’s commercial importance makes depositor confidence critical to economic growth.

He said Kano’s status as a major commercial hub makes depositor confidence critical to economic activity and financial inclusion.