By Nana Musa
The Nigeria Deposit Insurance Corporation (NDIC) has reiterated its commitment to protecting depositors funds and strengthening financial system stability through reforms aligned with the Federal Government’s Renewed Hope Agenda.
The Managing Director of NDIC, Dr Thompson Sunday, reiterated the commitment during a second-quarter citizens and stakeholders’ engagement session, at the Federal Ministry of Finance in Abuja on Monday.
Sunday said the engagement reflected NDIC’s commitment to transparency, accountability and educating Nigerians on its statutory responsibilities and contributions to national development.
He said the NDIC Act of 2023 empowered the corporation to guarantee deposits, supervise banks, resolve distressed institutions and liquidate failed banks.
He said that the deposit insurance protected customers by guaranteeing deposits whenever a bank’s licence is revoked by the Central Bank of Nigeria (CBN).
According to him, NDIC supervises banks jointly with the CBN through on-site examinations and off-site surveillance to safeguard financial stability.
Sunday said that the corporation also resolved distressed banks before they collapse, while ensuring orderly liquidation of institutions whose licences have been withdrawn.
He said that NDIC’s vision was to rank among the world’s leading deposit insurers through effective supervision, prompt reimbursement and financial system stability.
The NDIC boss said that the corporation supported the Renewed Hope Agenda by promoting economic stability, financial inclusion, digital finance and protecting vulnerable depositors.
He said the 2023 NDIC Act aligned with the country’s deposit insurance framework with international best practices under the International Association of Deposit Insurers.
According to him, the Act prioritises depositors over creditors and shareholders during bank liquidation, ensuring faster access to insured funds.
Sunday said that the law strengthened NDIC’s powers to resolve failing banks, recover assets and prosecute those responsible for bank failures.
He said that deposit insurance coverage was increased significantly to strengthen public confidence and deepen financial inclusion.
He said that the coverage for deposit money banks rose from N500,000 to N5 million, while microfinance and primary mortgage banks increased from N200,000 to N2 million.
According to him, mobile money subscribers and payment service bank customers now enjoy deposit protection of up to five million Naira.
He said that the reforms increased protection to 98.98 per cent of deposit money bank customers and almost all customers of payment service banks.
He said that although the law allowed 30 days for reimbursement, NDIC now pays insured deposits within 72 hours after licence revocation.
“The corporation achieved the 72-hour payment timeline using the Bank Verification Number (BVN) and Nigeria Inter-Bank Settlement System platforms.
“We paid insured Heritage Bank depositors within four days and completed payments to Union Homes and ASO Savings customers within 72 hours,” he said.
He said that NDIC currently supervised 914 licensed institutions with more than 281 million deposit accounts nationwide.
He said that the corporation paid N51.04 billion as insured deposits to Heritage Bank customers after the bank’s licence was revoked.
“We have also paid N33.59 billion as liquidation dividends to uninsured depositors while further recoveries continue.
“The corporation recovered billions of Naira through debt recoveries, investments and disposal of assets belonging to failed financial institutions,” he said.
He said that NDIC conducted on-site examinations of 287 financial institutions in 2025 and resolved about 85 per cent of depositor complaints received.
According to him, Nigerian banks remain among the country’s most regulated institutions because of their critical role in safeguarding depositors’ funds.
Sunday assured Nigerians that NDIC would continue to review deposit insurance coverage, strengthening digital finance and sustaining confidence in the banking sector.
He said that the corporation had contributed about N950 billion to the Federal Government’s Consolidated Revenue Fund, including about N274 billion in the previous year.
He reaffirmed NDIC’s commitment to supporting the Federal Government’s economic reforms while ensuring depositors could confidently keep their savings in Nigerian banks.
Earlier, the Permanent Secretary Finance (PSF) at the Federal Ministry of Finance, Mr Raymond Omachi, said that sustained stakeholder engagement was essential for effective fiscal reforms, transparency and improved public service delivery.
Omachi said that the engagement reflected the ministry’s commitment to transparency, accountability and effective communication with citizens and stakeholders on government policies and programmes.
He said that the platform enabled the ministry to showcase achievements in implementing presidential directives and ministerial mandates across its departments and agencies.
According to him, the ministry has remained committed to fiscal reforms under Tinubu’s administration to restore macroeconomic stability and strengthen public financial management.
The PSF said that the reforms were designed to place Nigeria’s economy on a sustainable path of growth while promoting efficiency, accountability and prudent management of public resources.
He said that the fiscal policies directly affected Nigerians’ livelihoods, making continuous public engagement necessary for better understanding and constructive dialogue.
He said that participants would have opportunities to ask questions and receive explanations on ongoing reforms from relevant agencies.
The PSF said that previous sessions featured presentations by key agencies, including MOFI, Securities and Exchange Commission (SEC), among others.
Omachi said that the NDIC was selected for the current session because of its critical role in safeguarding depositors and financial stability.
He said that NDIC would present its mandate, reforms, achievements and initiatives aimed at strengthening deposit protection and enhancing confidence in the banking system.
He described the corporation as a vital component of Nigeria’s financial safety net, protecting depositors whenever banks experience distress.