NDIC assures faster payouts, says failed bank depositors now paid within days

From Sola Ojo, Abuja

The Nigeria Deposit Insurance Corporation (NDIC) has said depositors of failed banks in Nigeria can now access their insured funds within days.

The corporation said the development is a part of ongoing reforms aimed at strengthening confidence in the country’s financial system.

The Managing Director/Chief Executive of NDIC, Mr. Thompson Oludare Sunday, disclosed this at the NDIC Special Day of the 47th Kaduna International Trade Fair, noting that recent interventions had significantly improved the speed and efficiency of depositor compensation.

Represented by Dr. Regina Dimlong, Assistant Director, Communication and Public Affairs, Sunday said the Corporation had successfully deployed the Bank Verification Number (BVN) system to facilitate prompt payments to customers of recently failed banks, including Heritage Bank Limited, Union Homes Plc and Aso Savings and Loans Plc.

“Depositors were paid within days of closure without the need to fill physical forms or visit NDIC offices.

“This is a part of our reform efforts to make depositor protection faster, simpler and more transparent,” he said.

According to him, the reforms were designed to restore public confidence in the banking system and prevent panic withdrawals, especially during periods of financial stress.

Sunday explained that NDIC’s mandate spans deposit insurance, bank supervision, distress resolution and liquidation of failed banks, adding that the Corporation works closely with the Central Bank of Nigeria (CBN) to ensure early detection of risks in insured institutions.

He disclosed that in 2024, NDIC reviewed its deposit insurance framework, increasing coverage for depositors of Deposit Money Banks, Mobile Money Operators and Non-Interest Banks to N5 million, while customers of Microfinance Banks, Primary Mortgage Banks and Payment Service Banks are now covered up to N2 million.

He noted that the revised thresholds now guarantee full protection for about 99 percent of depositors nationwide, particularly small savers and low-income earners.

The NDIC boss urged Nigerians to ensure their BVNs are properly linked to their bank accounts, stressing that this had become the primary channel for accessing insured deposits in the event of bank failure.

In his remarks, the President of the Kaduna Chamber of Commerce, Industry, Mines and Agriculture (KADCCIMA), Alhaji Faruk Suleiman, said NDIC’s reforms had strengthened Nigeria’s financial safety net and improved the investment climate.

He said NDIC’s role in resolving distressed banks and protecting depositors had become increasingly critical, especially for micro, small and medium enterprises (MSMEs) that rely on stable financial institutions for growth.

Suleiman called for deeper collaboration between NDIC and business associations to expand deposit insurance awareness among traders, farmers, artisans and operators in the informal sector, many of whom now transact through microfinance banks and fintech platforms.

He noted that financial stability remained a key driver of investment, access to credit and job creation, adding that NDIC’s interventions were central to Nigeria’s broader economic reform agenda.