The Nigeria Deposit Insurance Corporation (NDIC) has urged bank customers to maintain alternate accounts in different financial institutions to ensure quick access to their funds if a bank faces distress. The advice was shared during the NDIC’s Special Day at the 2025 Lagos International Trade Fair, themed “Connecting Business, Creating Value.”
Speaking on behalf of NDIC Managing Director and Chief Executive, Mr. Thompson Oludare Sunday, Director of Claims Resolution Mr. Kazeem Sule Olawale emphasized that having multiple accounts linked to a Bank Verification Number (BVN) helps depositors access their money efficiently while boosting public confidence in the banking system.
“Bank deposit safety is a shared responsibility between banks, regulators, and depositors,” the NDIC stated. Customers are encouraged to keep their account information up-to-date, link their BVNs, and safeguard account details to prevent unauthorized access. In addition, maintaining an alternate account in another bank ensures that refunds are processed quickly if the primary bank fails.
The NDIC also highlighted recent improvements in deposit insurance coverage, a key measure to enhance financial security. Depositors in Deposit Money Banks (DMBs), Non-Interest Banks (NIBs), and Mobile Money Operators (MMOs) are now insured up to N5 million per account, while those in Payment Service Banks (PSBs), Microfinance Banks (MFBs), and Primary Mortgage Banks (PMBs) are covered up to N2 million.
Mr. Sunday further explained that, in the rare event of a bank failure, depositors whose balances exceed the insured limit will initially receive the insured amount. Any remaining funds are paid through liquidation dividends from the failed bank’s assets, ensuring fairness and transparency. The NDIC stressed that depositors should promptly report any irregularities to their banks, with unresolved cases escalated to the NDIC or Central Bank of Nigeria (CBN).
source: arise