In a major move to safeguard the savings of Nigerian bank customers, the Nigeria Deposit Insurance Corporation (NDIC) and the Nigeria Inter-Bank Settlement System (NIBSS) Plc are set to formalize a partnership aimed at revolutionizing how depositors are paid back in the event of a bank failure.
The two agencies are currently drafting a Memorandum of Understanding (MoU) to digitize and accelerate the reimbursement process, ensuring that Nigerians can access their insured funds with minimal delay if their financial institution closes.
The initiative was disclosed during a courtesy visit by the NIBSS executive team, led by Managing Director Premier Oiwoh, to the NDIC headquarters in Abuja. NDIC Managing Director Thompson Oludare Sunday praised NIBSS for its critical role during the recent closure of Heritage Bank Limited.
According to Sunday, the Bank Verification Number (BVN) platform managed by NIBSS was the “technological backbone” that allowed the NDIC to verify depositors and push payments into their alternate bank accounts seamlessly, despite the sudden nature of the bank’s liquidation.
“Without NIBSS’s support, it would have been difficult to achieve the milestone we attained with the closure of Heritage Bank,” Sunday stated. “That is why it is important for us to concretize our partnership through this MoU.”
The upcoming agreement focuses on three strategic pillars designed to provide “respite” and speed to the Nigerian public. First, it establishes real-time synchronization by creating a system where the NDIC’s deposit registers and electronic records are updated instantly to allow for immediate verification during bank resolutions. Second, the plan expands disbursement channels beyond traditional bank transfers, as the NDIC intends to use Mobile Money Operators (MMOs) and potentially a dedicated NDIC-branded mobile interface to pay out claims. Finally, it implements a Single Customer View (SCV) by investing in infrastructure that provides a unified view of a customer’s total deposits across the banking system for instant validation.
Responding to the proposal, NIBSS MD Premier Oiwoh reaffirmed his organization’s commitment to providing the necessary technology to protect depositors. He noted that prompt reimbursement is not just a logistical task but a cornerstone of public trust and financial inclusion in Nigeria.
Oiwoh also highlighted ongoing efforts to work with law enforcement to reinforce the safety of the nation’s payment system and lower transaction costs for all users.
The collaboration, announced via a statement by Hawwau Gambo, Head of Communication and Public Affairs at NDIC, is expected to usher in a new era of technology-driven financial safety nets, ensuring that “bank failure” no longer means “financial ruin” for the average Nigerian depositor.