Tony Chukwunyem 
The Managing Director and Chief Executive of the Nigeria Deposit Insurance Corporation (NDIC), Mr Thompson Oludare Sunday, has urged bank depositors to always ensure that their account information is up-to-date.
In his speech at the NDIC’s Special Day at the ongoing Lagos International Trade Fair in Lagos on Tuesday, Mr. Sunday, who was represented by the Director of Dispute Resolution at the NDIC, Mr. Oluwole Sule, stated that by ensuring that all the information required of a bank account is up-to-date, including that it is linked with the right Bank Verification Number (BVN), depositors would be helping the corporation to facilitate prompt reimbursement in the unlikely event of a bank failure.
He said: “It is important to emphasise that the safety of bank deposits is a shared responsibility among banks, regulators, and indeed depositors. Depositors must ensure that their account information is up-to-date, including linking their Bank Verification Number (BVN) to all accounts. They must also protect their account details to prevent unauthorised access.
“To facilitate prompt reimbursement in the unlikely event of a bank failure, depositors are advised to maintain an alternate account in another bank with matching personal information and ensure that their BVN is linked to all such accounts.”
The NDIC boss also advised depositors to promptly report any suspected irregularities in their accounts to their banks, noting that banks are required to resolve such issues within two weeks. He further advised that, “if unresolved or unsatisfactorily done, complaints should be escalated to the NDIC or the CBN through the appropriate channels.”
According to him, the NDIC has made significant progress in enhancing depositor protection, particularly through increased deposit insurance coverage, which has resulted in approximately 99 per cent of depositors being covered.
As he put it: “Currently, the NDIC insures depositors of Deposit Money Banks (DMBs), Mobile Money Operators (MMOs), and Non-Interest Banks (NIBs) up to N5,000,000 per depositor, while for Payment Service Banks (PSBs), Microfinance Banks (MFBs), and Primary Mortgage Banks (PMBs), the coverage is N2,000,000. With this expanded coverage, approximately 99% of depositors are covered, demonstrating our unwavering commitment to deepening public confidence in the banking system.
“In the rare event of a bank failing, depositors, whose balances exceed the insured limit, will receive an initial payment up to the insured amount, with the remaining balance paid through liquidation dividends. These dividends are distributed from the proceeds of the failed bank’s assets on a pro-rata basis, ensuring fairness and transparency.”
The NDIC MD, who commended the Lagos Chamber of Commerce and Industry (LCCI) for organising the Fair over the decades, said that the event has “consistently promoted trade and investment, showcased innovation, informed the public about developments in the financial sector, and contributed significantly to economic growth.”
He noted that the theme of this year’s Fair- “Connecting Business, Creating Value”- aligns closely with the public policy objectives and mandate of the NDIC.
“For the past 36 years, the NDIC has served as a vital component of Nigeria’s financial safety-net, playing a pivotal role in promoting the stability of the banking system by providing a strong and consistent layer of protection for depositors’ funds. There is no gainsaying that a stable banking system is an indispensable pillar that sustains business connectivity and enables value creation,” Mr. Sunday said.
