The Nigeria Deposit Insurance Corporation (NDIC) and the Nigeria Inter‑Bank Settlement System (NIBSS) have agreed to improve the reimbursement process for depositors when a bank fails. The aim is to create a more efficient, digitised system that strengthens confidence in Nigeria’s financial safety‑net framework.
During a courtesy visit to the NDIC head office in Abuja, NDIC Managing Director/Chief Executive Thompson Oludare Sunday praised NIBSS for its role in protecting depositors and boosting public confidence in the banking system. He highlighted NIBSS’s pivotal contribution to digital verification, especially through the Bank Verification Number (BVN) platform, which enabled seamless payments to the alternate accounts of depositors of the failed Heritage Bank Limited.
The partnership will focus on several key areas: real‑time synchronisation of deposit registers and electronic records; expansion of disbursement channels for depositor claims; and investment in a Single Customer View (SCV) and interoperability infrastructure. These initiatives will allow swift verification of eligible accounts during bank resolution and instant validation in the event of a failure.
NDIC and NIBSS have a long‑standing collaboration, with NIBSS providing the technological backbone needed to enhance financial system stability. The enhanced cooperation is expected to usher in a new era of digitised, responsive, and technology‑driven depositor reimbursement, directly contributing to public trust and financial inclusion. Prompt, efficient reimbursement during bank failures is critical for maintaining confidence in the financial system.
The NDIC’s mandate to protect depositors and enhance public confidence, combined with NIBSS’s support, positions the corporation to further strengthen its capabilities. This collaboration represents a significant step toward reinforcing Nigeria’s financial safety‑net framework and promoting a safer, more efficient payment system.
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