The Nigeria Deposit Insurance Corporation (NDIC) on Monday reaffirmed its commitment to protecting bank depositors and strengthening confidence in the Nigerian financial system at a Stakeholders’ Town Hall Meeting held in Kano.
The forum, themed; “Strengthening Depositor Confidence: NDIC’s Role in Financial System Stability and Consumer Protection,” brought together regulators, financial institutions, trade associations, civil society groups, students and other stakeholders to discuss deposit insurance, consumer protection and recent developments in the banking sector.
Speaking at the event, the Controller of the NDIC Kano Zonal Office, Mr. Ahmad Umar, said the Corporation’s primary mandate is to protect depositors’ funds in the event of bank failure through prompt payment of insured deposits and the recovery of liquidation dividends for depositors with balances above the insured limit.
Umar said confidence in the banking system is critical to economic growth, as individuals and businesses are more willing to save and transact when assured of the safety of their funds in licensed banks.
He added that the Kano Zonal Office plays a key role in on-site bank supervision, failure resolution, payout of insured deposits and public enlightenment, noting that the Town Hall Meeting is part of a nationwide stakeholder engagement programme also being held in Enugu and Lagos.
Providing an overview of the initiative, the Head of Communication and Public Affairs (CPAD) of the NDIC, Mrs Hawwau Gambo, said recent developments in the banking sector, including licence revocations by the Central Bank of Nigeria (CBN) and ongoing bank recapitalisation, have increased public interest and misconceptions about the Deposit Insurance System.
She said findings from the NDIC’s Public Awareness Survey showed the need for direct engagement with stakeholders, leading to the introduction of the Town Hall Meetings.
According to her, the programme includes presentations on depositor protection, financial literacy, consumer responsibilities and bank charges, as well as pre- and post-assessment sessions to evaluate impact.
In her keynote address, the Executive Director, Corporate Services, Mrs. Emily C. Osuji, said the engagement was aimed at improving public understanding of the Deposit Insurance System and clarifying what is covered, how reimbursements are made and the steps depositors should take when a bank fails.
Osuji said the NDIC enhanced deposit insurance coverage in 2024, raising insured limits to ₦5 million for depositors of Deposit Money Banks, Mobile Money Operators and Non-Interest Banks, and ₦2 million for depositors of Microfinance Banks, Primary Mortgage Banks and Payment Service Banks.
She said the expanded coverage now protects about 99 per cent of depositors nationwide.
The NDIC executive also said the Corporation has paid insured deposits to customers of recently closed banks, including Heritage Bank Limited, Union Homes Plc and Aso Savings and Loans Plc, using Bank Verification Numbers (BVN) to facilitate prompt reimbursement.
She urged depositors to ensure their BVNs are properly linked to their bank accounts to enable access to insured funds where necessary.
Osuji added that maintaining financial system stability requires the combined efforts of regulators, financial institutions and depositors.
The Town Hall Meeting featured question-and-answer sessions and stakeholder feedback aimed at strengthening public awareness and confidence in the banking system.