We Now Pay Depositors of Failed Bank Within Days—NDIC

By Adedapo Adesanya

The Nigeria Deposit Insurance Corporation (NDIC) says 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 chief executive of NDIC, Mr Thompson Sunday, disclosed this on Thursday 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 Mrs Regina Dimlong, the Assistant Director of Communications and Public Affairs, Mr 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.

Mr 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 per cent 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.