Nigeria Deposit Insurance Corporation Covers 99% of Bank Depositors, Calls for BVN Linkage
The Nigeria Deposit Insurance Corporation (NDIC) has disclosed that about 99 per cent of depositors in Nigerian banks are fully protected under its enhanced deposit insurance scheme, urging customers to link their Bank Verification Numbers (BVN) to their accounts to ensure seamless access to funds in the event of a bank failure.
The Managing Director and Chief Executive Officer of NDIC, Thompson Oludare, made this known during the corporation’s Special Day at the 47th Kaduna International Trade Fair. The event was organised by the Kaduna Chamber of Commerce, Industry, Mines and Agriculture under the theme, “From Reforms to Results: Economic Transformation through Sustained Local Content Development.”
Represented by Dr Regina Dinlung, Assistant Director in the Communication and Public Affairs Department, Oludare said the theme aligns with ongoing reforms in Nigeria’s financial sector aimed at delivering measurable benefits to citizens.
“For over three decades, the NDIC has played a vital role in protecting depositors’ funds, especially the most vulnerable, from the adverse effects of bank failures,” he said.
Oludare explained that the corporation’s mandate includes deposit insurance, supervision of insured institutions, distress resolution, and orderly liquidation of failed banks. He added that NDIC works closely with the Central Bank of Nigeria to strengthen risk-based supervision and resolution planning to safeguard financial system stability.
According to him, depositors in Deposit Money Banks, Mobile Money Operators, and Non-Interest Banks are insured up to ₦5 million per depositor per bank, while those in Payment Service Banks, Microfinance Banks, and Primary Mortgage Banks are covered up to ₦2 million per depositor per bank.
“This expanded coverage protects about 99 per cent of depositors, reinforcing public confidence in the banking system,” Oludare said.
He noted that in cases of bank failure, insured depositors are paid promptly up to the guaranteed limit, while those with balances above the insured threshold receive liquidation dividends as the failed bank’s assets are realised.
Citing recent interventions involving Heritage Bank Limited, Union Homes Plc, and Aso Savings and Loans Plc, Oludare said the corporation utilised depositors’ BVNs as unique identifiers to transfer claims to alternate accounts within days of the banks’ closure.
“I therefore urge all depositors to ensure their BVNs are properly linked to their bank accounts and identity records to facilitate timely access to insured deposits if the need arises,” he added.
Oludare reaffirmed NDIC’s commitment to becoming a more responsive and technology-driven institution focused not only on resolving bank failures but also on preventing them and strengthening public trust.
Earlier, the President of the Kaduna Chamber of Commerce, Industry, Mines and Agriculture, Alhaji Farouk Suleiman, commended NDIC’s role in protecting depositors’ funds, describing the corporation as a critical pillar in sustaining economic confidence and institutional trust.
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