Odimmegwa Johnpeter/Abuja
The Nigeria Deposit Insurance Corporation (NDIC) has held a stakeholders’ engagement session in Lagos aimed at deepening public understanding of the expanded Deposit Insurance Scheme (DIS) and strengthening confidence in the nation’s banking system.
The engagement, which took place in Lagos, brought together key players from the financial sector, civil society organisations, trade associations, professional bodies, students, and representatives of regulatory institutions to discuss depositor protection, consumer empowerment and financial system stability.
Speaking at the event, the Managing Director/Chief Executive Officer of NDIC, Mr Oludare Sunday, said the forum was designed to enhance understanding of how deposit insurance works and address misconceptions surrounding the scheme.
Sunday, who was represented by the Director, Bank Examination Department, Mr. Olukoya Adebayo Adeyinka, noted that many Nigerians still misunderstand the scope, benefits and limitations of deposit insurance, including what is covered, what is not, and the steps depositors should take when a bank’s licence is revoked.
According to him, the engagement provided a platform to clarify these issues in practical terms and empower depositors with the knowledge of how their funds are protected and how reimbursements are processed.
He explained that the corporation fulfils its mandate through deposit guarantee, bank supervision, distress resolution, and bank liquidation, all aimed at protecting the hard-earned savings of Nigerians and sustaining confidence in the financial system.
“Our strapline, ‘protecting your bank deposits’, is more than just words. It is a firm commitment to ensuring that depositors have access to their savings in the event of bank failure,” he said.
Sunday stated that NDIC remains a pillar of reassurance for depositors, especially in times of financial uncertainty and distress, noting that the corporation strengthened depositor protection by increasing the maximum deposit insurance coverage in 2024.
He disclosed that depositors of Deposit Money Banks (DMBs), Mobile Money Operators (MMOs) and non-interest banks are now insured up to N5 million, while depositors of Microfinance Banks (MFBs), Primary Mortgage Institutions (PMIs) and Payment Service Banks (PSBs) are covered up to N2 million.
He added that the expanded coverage protects about 99 per cent of depositors in Nigeria and is a deliberate policy to safeguard small savers, promote financial inclusion, and enhance trust in the banking sector.
The NDIC boss further explained that in the event of bank failure, depositors are paid promptly up to the insured limit, while those with balances above the insured threshold receive the insured amount first and later receive liquidation dividends after recovery of the failed bank’s assets.
He also highlighted improvements in NDIC’s payout processes, citing the prompt settlement of depositors of defunct Heritage Bank Limited, Union Homes PLC and Oursource Savings and Loans PLC, where the corporation leveraged depositors’ Bank Verification Numbers (BVN) to trace alternate accounts and transfer claims within days of closure.
He therefore urged depositors to ensure that their BVN is properly linked to their bank accounts and identity records to enable seamless access to insured deposits.
Giving an overview of the programme, the Acting Head, Communication and Public Affairs Department, NDIC, Hauwa Gambo, said the engagement was carefully designed to strengthen depositor confidence, improve financial literacy and enhance consumer protection.
She said presentations at the session covered NDIC’s role in depositor protection, responsibilities of bank customers, and insights from the Consumer Protection Department of the Central Bank of Nigeria (CBN) on bank charges, electronic banking and financial prudence.
Gambo added that the programme included pre- and post-evaluation sessions to measure the impact of the engagement and guide improvements in future stakeholder outreach.
She disclosed that similar engagements had earlier been held in Kano and Enugu, noting that NDIC plans to replicate the initiative across the country to reach more stakeholders.
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