The Nigeria Deposit Insurance Corporation (NDIC) and the Nigeria Inter-Bank Settlement System (NIBSS) have agreed to enhance the reimbursement process for depositors in the event of bank failure. This development aims to ensure a more efficient and digitized process, ultimately reinforcing confidence in Nigeria’s financial safety-net framework.
During a courtesy visit to the NDIC’s Head Office in Abuja, the Managing Director/Chief Executive of the NDIC, Mr. Thompson Oludare Sunday, commended NIBSS for its contributions to protecting depositors and enhancing public confidence in the banking system. He highlighted the pivotal role played by NIBSS in driving digital verification processes, particularly through the deployment of the Bank Verification Number (BVN) platform. This platform enabled seamless payment to the alternate bank accounts of depositors of failed Heritage Bank Limited.
The partnership between NDIC and NIBSS will cover key areas, including real-time synchronization of deposit registers and electronic records, expansion of disbursement channels for depositor claims, and investment in Single Customer View (SCV) and interoperability infrastructure. These initiatives will facilitate swift verification of eligible accounts during bank resolution and instant validation in the event of bank failure.
The NDIC and NIBSS have a long-standing partnership, with NIBSS providing the technological backbone required to enhance financial system stability. The collaboration is expected to usher in a new era of digitized, responsive, and technology-driven depositor reimbursement process. This will directly contribute to public trust and financial inclusion, as prompt and efficient reimbursement during bank failures is critical to maintaining confidence in the financial system.
The NDIC’s efforts in depositor protection and reimbursement have been instrumental in maintaining stability in the banking sector. The corporation’s mandate is to protect depositors and enhance public confidence in the banking system. With the support of NIBSS, the NDIC is poised to further strengthen its capabilities and provide a more efficient and digitized reimbursement process for depositors in the event of bank failure. This collaboration is a significant step towards reinforcing Nigeria’s financial safety-net framework and promoting a safer and more efficient payment system.