Open Alternative Accounts for Faster Resolution, Deposit Insurance Corporation Urges Bank Customers

The Nigeria Deposit Insurance Corporation (NDIC) has advised bank customers across the country to open and maintain alternative accounts in other financial institutions with matching personal details, to enable them to access their funds quickly in the unlikely event of bank distress.

The managing director and chief executive of the NDIC, Mr. Thompson Oludare Sunday, gave the advice during the Corporation’s Special Day at the 2025 Lagos International Trade Fair, themed “Connecting Business, Creating Value.”

The NDIC MD, who was also represented by the Director of Claims Resolution, Mr Kazeem Sule Olawale, explained that the initiative forms part of the Corporation’s ongoing efforts to strengthen depositor protection and reinforce public confidence in the Nigerian financial system.

According to him, maintaining an alternate account in another financial institution with consistent personal information will help depositors access their funds more efficiently in the event of any disruption.

“It is important to emphasise that the safety of bank deposits is a shared responsibility among banks, regulators, and indeed depositors. Depositors must ensure that their account information is up-to-date, including linking their Bank Verification Number (BVN) to all accounts. They must also protect their account details to prevent unauthorised access.

“To facilitate prompt reimbursement in the unlikely event of a bank failure, depositors are advised to maintain an alternate account in another bank with matching personal information and ensure that their BVN is linked to all such accounts.”

The NDIC boss further urged customers to take greater responsibility for safeguarding their financial data and keeping accurate records, stressing that proactive participation by depositors complements the regulator’s mandate to protect the banking system.

He also called on banks to strengthen their complaint resolution systems, ensuring that customers’ issues are addressed within two weeks.

“Depositors should also promptly report any suspected irregularities in their accounts to their banks. Banks are required to resolve such issues within two weeks. If unresolved or unsatisfactorily done, complaints should be escalated to the NDIC or the CBN through the appropriate channels,” he added.

Highlighting recent strides in the deposit insurance framework, Sunday disclosed that the NDIC had expanded coverage limits across several categories of financial institutions to enhance depositor confidence.

“We have made significant progress in enhancing depositor protection, particularly through increased deposit insurance coverage. Currently, the NDIC insures depositors of Deposit Money Banks (DMBs), Mobile Money Operators (MMOs), and Non-Interest Banks (NIBs) up to N5,000,000 per depositor. At the same time, for Payment Service Banks (PSBs), Microfinance Banks (MFBs), and Primary Mortgage Banks (PMBs), the coverage is N2,000,000. With this expanded coverage, approximately 99 per cent of depositors are covered, demonstrating our unwavering commitment to deepening public confidence in the banking system,” he stated.

He added that in the rare case of a bank failure, depositors with funds exceeding the insured limits would still receive the insured portion first, while any additional payments would be made from the liquidation proceeds.

“In the rare event of a bank failing, depositors, whose balances exceed the insured limit, will receive an initial payment up to the insured amount, with the remaining balance paid through liquidation dividends. These dividends are distributed from the proceeds of the failed bank’s assets on a pro-rata basis, ensuring fairness and transparency,” he said.

The NDIC, Sunday reiterated, remains committed to safeguarding the interests of depositors, promoting financial stability, and ensuring that no Nigerian loses confidence in the banking sector.