NDIC Urges Bank Customers to Link BVN for Faster Deposit Refunds
The Nigeria Deposit Insurance Corporation (NDIC) has issued a crucial advisory to bank customers across Nigeria, urging them to ensure their Bank Verification Number (BVN) is properly linked to their accounts. This measure is designed to facilitate faster reimbursement of insured deposits in the unfortunate event of a bank failure.
Key Message from NDIC Executive Director
Mrs Emily C. Osuji, the Executive Director of Corporate Services at NDIC, made this important call during a keynote address at the NDIC Stakeholders Town Hall Meeting held in Kano. The event, which took place over the weekend, was specifically aimed at strengthening depositor confidence and enhancing consumer protection within Nigeria's banking sector.
Osuji emphasized that the forum represents part of the Corporation's renewed efforts to deepen engagement with stakeholders, correct misconceptions surrounding the Deposit Insurance System (DIS), and boost public confidence in the banking system. She noted that many depositors still lack clarity on what the insurance scheme covers, how reimbursements are processed after a bank's licence is revoked, and the steps customers should take when a bank is shut down.
Enhanced Deposit Insurance Coverage
The NDIC executive director reaffirmed the corporation's mandate, which includes deposit guarantee, bank supervision, distress resolution, and bank liquidation. She stressed that NDIC remains committed to protecting depositors' savings and maintaining stability in Nigeria's financial system.
Osuji recalled that the corporation increased maximum deposit insurance coverage in 2024 to further strengthen depositors' protection. Under the current scheme:
- Depositors of deposit money banks, mobile money operators, and non-interest banks are now insured up to N5 million
- Customers of microfinance banks, primary mortgage banks, and payment service banks are covered up to N2 million
She explained that in the event of bank failure, depositors are paid promptly up to the insured limit, while balances above the limit are paid as liquidation dividends after the realisation of assets and recovery of debts.
Improved Payout Processes
Osuji highlighted that NDIC has significantly improved its payout processes, citing the prompt settlement of insured depositors of defunct Heritage Bank Limited, Union Homes Plc, and Aso Savings and Loans Plc. She revealed that the Corporation used BVN to trace alternative accounts and transfer insured funds within days of these banks' closure.
"The Corporation used BVN to trace alternative accounts and transfer insured funds within days of the banks' closure," Osuji stated, underscoring the critical importance of properly linked BVN records.
Importance of Kano as Commercial Hub
In his welcome remarks, Mr Ahmad Umar, the Controller of NDIC Kano Zonal Office, described the town hall theme — "Strengthening Depositor Confidence: NDIC's Role in Financial System Stability and Consumer Protection" — as central to the Corporation's mission.
Umar noted that Kano's position as a major commercial hub makes depositor confidence vital to economic activity and financial inclusion. He added that the zonal office plays a key role in bank supervision, failure resolution, prompt payment of insured deposits, and grassroots awareness campaigns.
Practical Steps for Depositors
The NDIC therefore urges all depositors to ensure their BVN is properly linked to their bank accounts and identity records. This simple but crucial step will facilitate seamless and timely access to insured deposits should the need arise.
Osuji reaffirmed the corporation's commitment to depositor protection, stating that the NDIC's slogan, 'Protecting your bank deposits!', reflects its unwavering resolve to ensure depositors have access to their funds in the event of bank failure.
