NDIC EXPANDS GRASSROOTS ENGAGEMENT TO BOOST DEPOSITOR CONFIDENCE
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By Aishat Momoh. O.
The Nigeria Deposit Insurance Corporation (NDIC) 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 forum brought together representatives of the Central Bank of Nigeria, financial institutions, trade associations, civil society organisations, academia, students, youth groups, women organisations and the media.
Speaking at the event, the Managing Director/Chief Executive of NDIC, Mr Sunday Thomson — represented by the Director, Bank Examination Department, Mrs Adeyinka Olukoya — said the corporation recognises the need to address public misconceptions about the Deposit Insurance System (DIS).
“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 the banking licence,” he said.
According to him, the town hall serves as a critical channel for empowering depositors with practical knowledge of how their funds are protected.
Highlighting the corporation’s strengthened protection framework, he explained that depositors of deposit money banks, mobile money operators and non-interest banks are insured up to N5 million, while depositors of microfinance banks, primary mortgage institutions and payment service banks are covered up to N2 million.
He noted that in the event of a bank failure, depositors are promptly paid up to the insured limit, while balances above that threshold are paid as liquidation dividends upon realisation of the bank’s assets and recovery of debts.
“This expanded coverage protects about 99 per cent of depositors in Nigeria,” he added.
The NDIC also urged depositors to ensure their Bank Verification Number is properly linked to their accounts to facilitate seamless access to insured deposits, noting improvements in its payout processes.
In her opening remarks, the Director of 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 core mandate.
“At its core, the NDIC exists to protect the savings of bank customers in the event of bank failure. 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 balances above the insured limit,” she said.
She described the town hall as a direct and interactive platform to clarify misconceptions and enhance public understanding of deposit insurance.
Providing further insight, the Head of Communication and Public Affairs Department, Hawwau Gambo, said recent developments in the banking sector — including licence revocations and ongoing recapitalisation efforts — have heightened public interest and, in some cases, misinformation.
“These developments, while necessary for financial system stability, have also heightened public interest and, in some instances, misconceptions and rumours about what is going on in the banking sector and the deposit insurance system,” she said.
Gambo added that the corporation considers it imperative to proactively engage stakeholders to provide clarity, build trust and strengthen depositor confidence.
The engagement programme features presentations on depositor protection, responsibilities of bank customers, financial prudence and evaluation tools designed to assess awareness levels and measure impact.
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