The Nigeria Deposit Insurance Corporation has disclosed that nearly 99 per cent of depositors in Nigerian banks are fully protected under its strengthened deposit insurance framework, while urging customers to link their Bank Verification Numbers to their accounts to ensure prompt access to insured funds in the event of a bank failure.

The Managing Director and Chief Executive Officer of the corporation, Thompson Oludare, made the disclosure on Wednesday during the NDIC Special Day at the 47th Kaduna International Trade Fair in Kaduna.

The trade fair, organized by the Kaduna Chamber of Commerce, Industry, Mines and Agriculture, carried the theme, “From Reforms to Results: Economic Transformation through Sustained Local Content Development.”

Represented by Dr. Regina Dinlung, Assistant Director of the Communication and Public Affairs Department, Thompson Oludare noted that the theme resonates with ongoing financial sector reforms designed to deliver concrete benefits to Nigerians.

“For over three decades, the Nigeria Deposit Insurance Corporation has played a critical role in protecting depositors’ funds, particularly those of the most vulnerable, from the negative effects of bank failure,” he said.

Highlighting the corporation’s mandate, Thompson Oludare explained that it includes deposit insurance, supervision of insured institutions, distress resolution, and the orderly liquidation of failed banks.

He added that the NDIC collaborates closely with the Central Bank of Nigeria to enhance risk-based supervision, develop resolution plans, and promote inter-agency cooperation to protect the banking system and minimize systemic disruptions.

“Our tagline, ‘Protecting Your Bank Deposits,’ reflects our enduring commitment to financial inclusion and stability, reassuring Nigerians that their savings are safe,” he stated.

Oludare revealed that in 2024, the Nigeria Deposit Insurance Corporation increased the maximum deposit insurance coverage to further strengthen depositor protection and boost public confidence.

He stated that depositors of Deposit Money Banks, Mobile Money Operators, and Non-Interest Banks are insured up to ₦5 million per depositor per bank, while those with Payment Service Banks, Microfinance Banks, and Primary Mortgage Banks enjoy coverage of up to ₦2 million per depositor per bank.

“This expanded coverage protects about 99 per cent of depositors, underscoring our commitment to safeguarding the savings of Nigerians,” he said.

He explained that in the event of a bank failure, insured depositors receive prompt payment up to the guaranteed limit, while depositors with balances exceeding the insured threshold are paid liquidation dividends as the failed bank’s assets are realised.

Citing recent interventions, Oludare referenced the closures of Heritage Bank Limited, Union Homes Plc, and Aso Savings and Loans Plc as examples of the corporation’s improved payout efficiency.

“In those instances, the corporation used the Bank Verification Number of depositors as a unique identifier to locate their alternate accounts into which their claims were transferred. This enabled the payment of claims within days of the banks’ closure,” he said.

“I therefore urge all depositors to ensure that their BVNs are properly linked to their bank accounts and identity records, as this greatly facilitates seamless and timely access to insured deposits in the event of bank failure,” he added.

Oludare also invited participants at the trade fair to visit the Nigeria Deposit Insurance Corporation pavilion to learn more about deposit insurance and ways to protect themselves from fraudulent schemes.