By Onu Okorie
Nigeria Deposit Insurance Corporation (NDIC) has said its enhanced deposit insurance coverage and technology-driven claims system are strengthening confidence in Nigeria’s banking system and providing greater protection for households and businesses.
The Managing Director/Chief Executive of NDIC, Mr Thompson Oludare Sunday, disclosed this yesterday at the Corporation’s Special Day at the 21st Abuja International Trade Fair organised by the Abuja Chamber of Commerce, Industry, Mines and Agriculture.
Speaking on the theme of the fair, “Resilience: Trade, Taxation and the Economy,” Sunday said a resilient financial system was essential to the Federal Government’s ambition of building a $1 trillion economy by 2030.
He said businesses could not thrive without a banking system capable of safeguarding working capital, facilitating payments and supporting access to credit for investment and expansion.
According to him, the NDIC increased the maximum insured deposit limit in 2024 to ₦5 million per depositor per Deposit Money Bank (DMB) and Mobile Money Operator (MMO), while the limit for depositors in Microfinance Banks (MFBs), Primary Mortgage Banks (PMBs) and Payment Service Banks (PSBs) was raised to ₦2 million.
The NDIC boss said the enhanced coverage provides full protection for more than 98 per cent of depositors across insured institutions.
He explained that depositors with balances above the insured limits could still receive liquidation dividends from recoveries made from debts owed to failed institutions and the disposal of their physical assets.
“Our objective is straightforward: no depositor should lose confidence in the banking system merely because an insured institution has failed,” Sunday said.
He said the Corporation was also transforming the process through which depositors receive their money following bank closures, leveraging the Bank Verification Number (BVN), Single Customer View (SCV), NIBSS infrastructure and other digital solutions.
He said verified depositors of failed banks could now receive their insured deposits within days of a bank’s closure, compared with the more cumbersome manual processes of the past.
Beyond paying claims after bank failures, Sunday said the NDIC was repositioning itself as a “Risk Minimizer” by identifying vulnerabilities early and strengthening safeguards to prevent problems in individual institutions from developing into systemic crises.
He listed the Corporation’s measures to include Risk-Based Supervision, an enhanced Differential Premium Assessment System, the Single Customer View Framework, a distress resolution suite and the Bank Liquidation Management System.
The NDIC chief also highlighted increased collaboration with the Central Bank of Nigeria and other institutions within the financial safety-net architecture as part of efforts to strengthen financial stability.
Warning on Ponzi schemes
Sunday used the occasion to warn Nigerians against keeping substantial funds outside the formal financial system or entrusting their savings to unlicensed fund managers offering unusually high returns.
He said the collapse of Ponzi schemes had repeatedly demonstrated the financial and emotional consequences of placing hard-earned money in unregulated investment schemes.
“If an investment promise sounds too good to be true, Nigerians should pause, ask questions and verify before committing their money,” he cautioned.
NDIC unveils digital gateway
Sunday also disclosed that the Corporation had launched an upgraded website on September 19 as part of efforts to make depositor protection more accessible and responsive.
He said the new digital platform provides information on enhanced deposit insurance limits and incorporates automated claims-processing features and an upgraded directory for verifying institutions insured by the NDIC.
The platform also provides a Quick Action Bar through which users can access four key services — File Claim, Check Banks, Report Failed Bank and FAQs.
According to him, an AI-powered virtual assistant has also been integrated into the platform to improve interaction with depositors and provide faster access to information.
“This is more than a website upgrade. It is another step in our journey towards a more accessible, responsive and technology-driven NDIC,” he said.
The NDIC boss urged depositors, creditors and shareholders of closed banks to utilise the Corporation’s digital platforms when processing claims, adding that depositors could accelerate reimbursement by ensuring that their account information was accurate and properly linked to their BVNs.
He said technology had eliminated the need for depositors to routinely visit failed-bank premises or NDIC offices for physical verification or move large volumes of documents between locations.
However, Sunday stressed that regulation and technology alone could not guarantee financial security, identifying financial literacy as the first line of defence for depositors and business owners.
He urged Nigerians and businesses to improve their financial knowledge, use digital financial services responsibly, maintain sound financial practices and seek guidance from relevant regulatory institutions when necessary.
“The more informed the public becomes, the stronger our collective capacity to build a resilient financial system,” he said.
