Nigeria’s deposit insurer has said customers can now recover their money more quickly when banks fail, thanks to the use of the Bank Verification Number (BVN) system.
The Managing Director of the (NDIC), said the system allows depositors to be refunded within days in many cases, reducing delays that previously affected payouts.
Speaking at an international trade fair in Enugu, he said the BVN makes it possible to trace customers’ alternative bank accounts and credit them directly after a financial institution is shut down.
“This process removes much of the bureaucracy that used to slow down reimbursements,” he said.
The NDIC added that it currently insures about 99% of depositors in Nigeria’s banking system, covering customers across commercial banks, mobile money operators and non-interest banks.
Under updated limits introduced in 2024, deposits of up to five million naira are protected in commercial banks, while customers of microfinance and mortgage banks are covered up to two million naira.
Officials said the compensation is funded through a pool built from contributions by banks, rather than government resources, allowing the agency to respond quickly without putting pressure on public finances.
The corporation also reassured customers with deposits above the insured threshold that they may still recover additional funds over time through the sale of assets and debt recovery from failed banks.
The NDIC urged customers to ensure their accounts are linked to their BVN to avoid delays in receiving payments.
Business leaders at the event welcomed the move, saying it could help strengthen confidence in Nigeria’s financial system, particularly among small businesses and individual savers.
The agency said improving payout speed remains part of wider efforts to maintain stability in the banking sector and protect depositors during periods of economic uncertainty.
