The Nigeria Deposit Insurance Corporation (NDIC) and the Nigeria Inter-Bank Settlement System Plc (NIBSS) are set to sign a Memorandum of Understanding (MoU) aimed at ensuring faster and more efficient payouts to depositors in the event of bank failures. The announcement underscores both institutions’ commitment to protecting depositors and enhancing trust in Nigeria’s banking system.
NDIC Managing Director/Chief Executive, Mr. Thompson Sunday, disclosed the plans during a courtesy visit from the NIBSS Executive Management team led by MD/CEO Mr. Premier Oiwoh at the NDIC Head Office in Abuja. The move follows the recent liquidation of two mortgage banks—Aso Savings and Loans and Union Homes Savings and Loans—whose licenses were revoked by the Central Bank of Nigeria. NDIC has assured that insured deposits of up to N2 million per depositor will be paid promptly, while claims above this threshold will be settled after asset liquidation.
Speaking at the meeting, Mr. Sunday praised NIBSS for its longstanding partnership and its role in strengthening the NDIC’s depositor protection mandate. He highlighted NIBSS’ contribution through digital verification tools like the Bank Verification Number (BVN) platform, which facilitated seamless payments during the closure of Heritage Bank Limited. “Without NIBSS’s support, it would have been difficult to achieve the milestone we attained with the closure of Heritage Bank,” he said, stressing the importance of formalizing their collaboration through the MoU.
Key areas of focus under the new MoU include real-time synchronization of NDIC deposit registers, expansion of disbursement channels to include Mobile Money Operators and potential NDIC-branded interfaces, and investment in interoperable systems for instant validation of accounts during bank failures. The agreement also aims to reinforce fraud prevention, reduce transaction costs, and promote financial inclusion across Nigeria.
In response, NIBSS CEO Premier Oiwoh reaffirmed his organization’s commitment to supporting the NDIC, emphasizing that the partnership enhances public trust and contributes to a safer, more efficient financial system. The MoU is expected to usher in a new era of digitized, responsive, and technology-driven depositor reimbursement processes, ultimately strengthening Nigeria’s financial safety net and public confidence in the banking sector.
source: Punch