NDIC Reaffirms Commitment to Depositors’ Protection at Enugu Trade Fair The Nigeria
NDIC Reaffirms Commitment to Depositors’ Protection at Enugu Trade Fair
The Nigeria
Deposit Insurance Corporation has reiterated its commitment to safeguarding depositors’ funds and strengthening financial system stability, as it participated in the 37th Enugu International Trade Fair.
Speaking during the Corporation’s Special Day at the event, Managing Director/Chief Executive, Thompson Oludare Sunday, described the Trade Fair’s theme, “Empowering MSMEs for Global Competitiveness,” as timely and essential for driving economic growth through resilient enterprises.
He commended the Enugu Chamber of Commerce, Industry, Mines and Agriculture for sustaining the Trade Fair as a platform for business networking, innovation, and investment promotion across the region. He noted that the NDIC has maintained a strong partnership with the organisers over the years due to shared goals in economic development.
Highlighting the Corporation’s role, Sunday said the NDIC has, for over three decades, protected depositors—especially vulnerable groups—while ensuring the stability of Nigeria’s banking system. He explained that the Corporation’s core responsibilities include deposit guarantees, bank supervision, resolution of failing institutions, and liquidation of distressed banks in collaboration with the Central Bank of Nigeria.
To boost public confidence, the NDIC increased deposit insurance coverage in 2024. Under the current framework, depositors in commercial, merchant, and non-interest banks, as well as mobile money operators, are insured up to ₦5 million, while those in microfinance, primary mortgage, and payment service banks are covered up to ₦2 million. According to him, the expanded coverage now protects about 99 percent of depositors.
Addressing concerns about how depositors are reimbursed when banks fail, the NDIC boss explained that licensed banks contribute premiums into a pool known as the Deposit Insurance Fund (DIF). In the event of a bank closure, the Corporation uses the fund to compensate depositors within a few days, leveraging the Bank Verification Number (BVN) system to transfer payments to alternative accounts.
He further clarified that depositors with balances above the insured limits are not left stranded, as the NDIC recovers funds through the sale of assets and debt recovery from failed banks. These proceeds are paid as liquidation dividends in phases until depositors recover as much of their funds as possible.
Citing recent examples, Sunday noted that depositors of defunct institutions such as Heritage Bank Limited, Union Homes Plc, and Aso Savings and Loans Plc have received insured payments, with additional dividend payouts ongoing as assets are realised.
He added that beyond automated BVN-linked payments, depositors can also file claims through the NDIC website or by visiting any of its zonal offices with valid identification and account details.
The NDIC chief encouraged participants at the Trade Fair to visit the Corporation’s pavilion to learn more about protecting their finances and avoiding fraudulent investment schemes.
He concluded by reaffirming the NDIC’s commitment to becoming a more technology-driven and citizen-focused institution, dedicated to enhancing depositor protection, boosting public confidence, and supporting Nigeria’s economic resilience.
