The Nigeria Deposit Insurance Corporation has intensified grassroots stakeholder engagement as part of efforts to reinforce trust in the Nigerian banking system and strengthen depositor confidence.
This was disclosed at the NDIC Stakeholders’ Town Hall Meeting held in Lagos on Saturday. The event brought together representatives of the Central Bank of Nigeria, financial institutions, trade associations, civil society organisations, academia, students, youth groups, women’s organisations and the media.
Speaking at the event, the Managing Director and Chief Executive of NDIC, Mr Sunday Thomson, who was represented by the Director of the Bank Examination Department, Mrs Adeyinka Olukoya, said there was a need to address misconceptions about the Deposit Insurance System.
“We recognise that misconceptions exist regarding the scope, benefits and limitations of the DIS. Some members of the public are unsure about what is covered and what is not, what steps to take when a bank is closed, or how depositors are reimbursed after the revocation of a banking licence,” he said.
He explained that the town hall meeting provided an opportunity to clarify these issues in practical terms and empower depositors with knowledge on how their funds are protected.
Highlighting NDIC’s strengthened protection framework, Thomson said depositors of deposit money banks, mobile money operators and non-interest banks are now insured up to N5m. Depositors of microfinance banks, primary mortgage institutions and payment service banks are covered up to N2m.
He added that in the event of a bank failure, depositors are promptly paid up to the insured limit, while balances above the limit are paid as liquidation dividends after asset recovery. According to him, the expanded coverage protects about 99 per cent of depositors in Nigeria.
The NDIC boss also noted improvements in payout processes and urged customers to ensure their Bank Verification Number is properly linked to their accounts to enable seamless access to insured deposits.
In her opening remarks, the Director of the Asset Management Department, Patricia Okosun, said the theme of the meeting — “Strengthening Depositors’ Confidence in NDIC’s Role in Financial System Stability and Consumer Protection” — reflects the corporation’s commitment to safeguarding depositors’ funds.
“At its core, the NDIC exists to protect the savings of bank customers in the event of bank failure,” she said. “When a bank fails, the NDIC steps in to ensure that depositors are paid their insured sums promptly, while also working to recover additional funds as liquidation dividends for those with funds above the insured limit.”
Okosun added that the town hall serves as a direct and interactive platform to clarify misconceptions about deposit insurance and NDIC’s role in maintaining financial stability.
Providing further insight, the Head of the Communication and Public Affairs Department, Hawwau Gambo, said recent developments in the banking sector made sustained engagement necessary.
She cited the revocation of operating licences of some banks by the Central Bank of Nigeria and NDIC’s subsequent payment of depositors, as well as ongoing recapitalisation efforts, as factors that heightened public interest and, in some cases, fuelled misconceptions.
According to her, the corporation considers it imperative to proactively engage stakeholders to provide clarity, build trust and strengthen depositor confidence.
She added that the engagement programme includes presentations on depositor protection, responsibilities of bank customers and financial prudence, alongside evaluation tools to measure awareness and impact.
