The Nigeria Deposit Insurance Corporation (NDIC) has advised bank customers to ensure their Bank Verification Number (BVN) is properly linked to their bank accounts, saying this is critical for the prompt payment of insured deposits when a bank fails.
The call was made on Monday in Kano by Emily Osuji, Executive Director, Corporate Services of the Corporation, during a stakeholders’ town hall meeting organised to strengthen depositor confidence and enhance consumer protection in the banking sector.
Osuji said the engagement was part of NDIC’s renewed strategy to deepen collaboration with stakeholders, dispel misconceptions surrounding the Deposit Insurance System (DIS), and reinforce public trust in the financial system.
Osuji highlighted the review of deposit insurance coverage approved in 2024, under which customers of Deposit Money Banks, Mobile Money Operators, and Non-Interest Banks are now insured up to N5 million. Depositors of Microfinance Banks, Primary Mortgage Banks, and Payment Service Banks, she added, enjoy coverage of up to N2 million.
According to her, many bank customers still lack clarity on what deposit insurance covers, the process for reimbursing depositors after a bank’s licence is revoked, and the actions depositors are expected to take when a bank is closed.
“This forum allows us to explain these issues in clear, practical terms and to empower depositors with the knowledge of how their funds are protected and how reimbursements are made,” she said.
She reaffirmed the NDIC’s statutory responsibilities, which include deposit guarantee, bank supervision, distress resolution, and liquidation of failed banks, noting that the Corporation remains committed to protecting depositors’ savings and maintaining financial system stability.
Osuji highlighted the review of deposit insurance coverage approved in 2024, under which customers of Deposit Money Banks, Mobile Money Operators, and Non-Interest Banks are now insured up to N5 million. Depositors of Microfinance Banks, Primary Mortgage Banks, and Payment Service Banks, she added, enjoy coverage of up to N2 million.
She explained that the enhanced coverage level protects about 99 per cent of depositors nationwide, with a strong focus on safeguarding small savers and advancing financial inclusion.
The NDIC executive also pointed to improvements in the Corporation’s payout process, citing the recent reimbursement of depositors of defunct Heritage Bank Limited, Union Homes PLC, and Aso Savings and Loans Plc. She said insured deposits were paid within days of the banks’ closure through the use of BVN to trace depositors’ alternate accounts.
“I therefore urge all depositors to ensure that their BVN is correctly linked to their bank accounts and identity records, as this makes access to insured funds seamless and timely,” Osuji said.
Earlier, Ahmad Umar, Controller in charge of Kano Zonal Office of the Corporation, described the town hall meeting’s theme: “Strengthening Depositor Confidence: NDIC’s Role in Financial System Stability and Consumer Protection”, as central to the Corporation’s mandate.
Umar noted that Kano’s position as a major commercial centre makes depositor confidence vital to economic activity and financial inclusion, adding that the zonal office plays a significant role in bank supervision, failure resolution, prompt payment of insured deposits, and public awareness at the grassroots.
