The Nigeria Deposit Insurance Corporation (NDIC) has emphasised its dedication to protecting the savings of Nigerian citizens through an enhanced deposit insurance scheme.
This scheme now offers coverage for up to 99 percent of the total depositors in the nation.
Speaking at a stakeholders’ town hall meeting in Enugu on Wednesday, the Executive Director of Operations, Dr Kabir Katata, emphasised that the corporation’s primary mission remains the protection of small savers and the maintenance of financial system stability.
The event served as a strategic platform to bridge the gap between regulatory mandates and public understanding of the deposit insurance system.
Addressing a diverse audience of professional bodies, civil society organisations, and academia, Dr Katata clarified that the upward review of insurance limits implemented in 2024 was a deliberate move to foster financial inclusion.
He said, “Under the current framework, depositors in Deposit Money Banks, Mobile Money Operators, and Non-Interest Banks enjoy a maximum coverage of N5 million. Meanwhile, those with funds in Microfinance Banks, Primary Mortgage Banks, and Payment Service Banks are insured up to a limit of N2 million, providing a safety net that covers the vast majority of account holders in the country.”
Dr Katata explained that the corporation’s role extends beyond mere guarantees to include bank supervision, distress resolution, and bank liquidation.
He noted that while the insured limit is paid out promptly following a bank’s licence revocation, depositors with balances exceeding these limits are not abandoned.
He added, “Such customers receive their initial insured sums immediately, while the remaining balances are paid as liquidation dividends once the failed bank’s assets are realised and debts are recovered.
This tiered approach ensures that even in extreme cases of bank failure, the recovery process remains transparent and structured.”
The Executive Director cited the recent successful reimbursements of depositors from defunct institutions such as Heritage Bank Limited, Union Homes Plc, and Aso Savings and Loans Plc as evidence of this progress.
He said, “By utilising the Bank Verification Number as a unique identifier, the NDIC was able to locate alternate accounts and credit claims within days of the banks’ closure, significantly reducing the waiting period for affected customers.”
In light of these technological advancements, Dr Katata urged all Nigerian bank account holders to ensure their BVNs are properly linked to their identity records, warning that the speed and ease of accessing insured deposits in the event of a financial crisis depend largely on the accuracy of this data.
According to him, the BVN serves as the essential link that allows the corporation to fulfil its “Protecting your bank deposits!” promise without the administrative bottlenecks that characterised liquidations in the past.
Dr Katata also highlighted the collaborative nature of financial stability, noting that the NDIC works closely with the Central Bank of Nigeria.
He said, “This partnership focuses on rigorous prudential regulation and supervision to ensure that licensed financial institutions adhere to high standards of corporate governance.
By enforcing robust risk management practices, the regulators aim to prevent bank failures before they occur, though the NDIC remains fully prepared to intervene should any institution’s licence be revoked.”
However, he maintained that responsibility for a healthy financial sector is shared among regulators, banks, and the public, urging depositors to remain vigilant and well informed about their rights and the financial health of the institutions they patronise.
The presence of Central Bank representatives and commercial bank officials at the Enugu forum was described as a move to provide the public with firsthand insights into consumer protection and the evolving responsibilities of the modern depositor.
The town hall meeting encouraged frank dialogue, with the NDIC inviting stakeholders to share their experiences and expectations. He noted that feedback from such grassroots engagements is vital for refining the corporation’s public awareness strategies and service delivery.
He added, “By listening to the concerns of student groups, women’s organisations, and trade associations, the NDIC aims to become more responsive and better equipped to handle the nuances of the Nigerian financial landscape.”
In conclusion, Dr Katata reassured Nigerians that the banking system remains a reliable channel for savings and economic growth, reaffirming that the NDIC stands as a pillar of safety, particularly for the most vulnerable members of society who rely on their hard earned savings for survival.