The Nigeria Deposit Insurance Corporation (NDIC) has strengthened its supervisory, risk assessment, failure-resolution and digital systems as part of measures to fortify Nigeria’s financial system and improve protection for depositors.
The Corporation has deployed Risk-Based Supervision, an enhanced Differential Premium Assessment System, the Single Customer View framework, a Distress Resolution suite and the Bank Liquidation Management System, while deepening collaboration with the Central Bank of Nigeria and other institutions within the financial safety-net architecture.
It has also expanded deposit insurance coverage and deployed technology to accelerate reimbursement of depositors of failed banks, measures the NDIC Managing Director/Chief Executive, Mr Thompson Oludare Sunday, said would strengthen confidence and resilience across the banking system.
Sunday spoke on Wednesday at the NDIC Special Day of the 21st Abuja International Trade Fair, organised by the Abuja Chamber of Commerce, Industry, Mines and Agriculture, which brought together financial experts, government officials, traditional rulers and other financial system stakeholders.
Represented by Imade Uhunmeagho, Director of Information Technology at the Corporation, Sunday said the measures reflected the Corporation’s shift from primarily paying claims after bank failures to becoming a ‘Risk Minimiser’ capable of identifying vulnerabilities early and preventing institutional problems from escalating into systemic crises.
‘Today, the NDIC has positioned itself to serve as not merely a payer of claims after bank failure, but as a Risk Minimiser; one that identifies vulnerabilities early, strengthens safeguards and works to prevent institutional problems from escalating into systemic crises,’ he said.
Sunday said the Corporation increased the maximum insured deposit limit in 2024 to ?5 million per depositor per Deposit Money Bank and Mobile Money Operator, and ?2 million for Microfinance Banks, Primary Mortgage Banks and Payment Service Banks.
According to him, the revised limits provide full coverage for more than 98 per cent of depositors across insured institutions, protecting households, small businesses and other vulnerable depositors against the immediate consequences of bank failure.
He said depositors with balances above the insured limits would continue to receive liquidation dividends from recoveries made through debts owed to failed institutions and disposal of their physical assets.
The NDIC chief executive said the Corporation had also moved from cumbersome manual reimbursement processes to faster digital claims settlement through Bank Verification Numbers, Single Customer View, 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.
Sunday also said the Corporation upgraded its website to give depositors and other stakeholders easier access to claims processing, information on deposit insurance coverage, and verification of NDIC-insured institutions.
However, he warned Nigerians against keeping substantial funds outside the formal financial system or entrusting their savings to unlicensed fund managers offering extraordinary returns.
He said the proliferation and collapse of Ponzi schemes had demonstrated the financial and emotional cost of placing hard-earned resources in unregulated schemes.
‘If an investment promise sounds too good to be true, Nigerians should pause, ask questions and verify before committing their money,’ he said.
He urged Nigerians to keep their money with licensed and regulated financial institutions and ensure that their account information was accurate and properly linked to their BVNs to facilitate speedy reimbursement where necessary.
The NDIC boss also called for greater financial literacy among depositors and business owners, saying informed customers were better positioned to make sound financial decisions and protect their resources.
He urged the public to use the Corporation’s digital platforms and engage relevant regulatory institutions whenever they required guidance on deposit insurance, claims processing or other aspects of depositor protection.
The event also featured a raffle draw, with participants winning various prizes.