The Nigeria Deposit Insurance Corporation (NDIC) has reaffirmed its commitment to protecting depositors and sustaining confidence in the nation’s banking system, declaring that its insurance framework currently safeguards about 99 per cent of customers across Nigerian banks.
Speaking during the NDIC Special Day at the 37th Enugu International Trade Fair, the Managing Director and Chief Executive, Thompson Oludare, highlighted the Corporation’s role as a critical stabiliser in the financial sector, particularly in times of economic uncertainty.
Addressing participants on the theme, “Empowering MSMEs for global competitiveness,” Oludare said NDIC remains a dependable backbone for small businesses by protecting their funds against bank failures.
He disclosed that the corporation reviewed and increased its insurance coverage in 2024 in line with prevailing economic realities.
Under the revised structure, depositors in Deposit Money Banks (DMBs), Mobile Money Operators, and Non-Interest Banks are insured up to N5,000,000, while those in Microfinance Banks and Primary Mortgage Institutions are covered up to N2,000,000.
Explaining the operational mechanism behind depositor protection, Oludare noted that the NDIC does not depend on government funding to reimburse customers of failed banks. Rather, it draws from the Deposit Insurance Fund (DIF), which is financed through premiums contributed by licensed financial institutions.
He described the process as efficient and sustainable, enabling the corporation to meet its obligations promptly without placing pressure on public finances.
Highlighting recent technological advancements, the NDIC boss revealed that the use of the Bank Verification Number (BVN) had significantly improved the speed of payments to affected depositors.
According to him, the BVN system allows the Corporation to trace alternative bank accounts of customers and process reimbursements within days of a bank’s closure, eliminating the delays previously associated with manual claims.
For depositors with balances above the insured limits, Oludare reassured that recovery efforts remain ongoing through liquidation processes.
He also cautioned Nigerians against falling victim to fraudulent financial schemes, popularly known as “wonder banks,” urging them to verify the credibility of financial institutions before investing.
On his part, the President of the Enugu Chamber of Commerce, Industry, Mines and Agriculture (ECCIMA), Nnanyelugo Onyemelukwe, described the Corporation as a dependable safeguard for depositors.
(The Sun)
