Nigeria’s deposit insurance agency has urged bank customers to ensure their Bank Verification Numbers (BVNs) are linked to their accounts, saying this will speed up access to insured funds if a bank collapses.
The Managing Director of the Nigeria Deposit Insurance Corporation (NDIC), Thompson Oludare Sunday, made the call on Wednesday at the 47th Kaduna International Trade Fair. He was represented by an assistant director at the agency, Regina Dinlung.
Mr Sunday said linking BVNs to bank accounts allows the NDIC to quickly identify depositors and pay compensation without delays when a financial institution fails.
“For more than three decades, the NDIC has played a critical role in protecting depositors’ funds, especially those of vulnerable Nigerians, from the impact of bank failure,” he said.
The NDIC is responsible for insuring bank deposits, supervising insured institutions, resolving distressed banks and liquidating failed ones. It works closely with the Central Bank of Nigeria to oversee the country’s banking system.
As part of reforms aimed at strengthening confidence in the financial sector, the NDIC increased deposit insurance coverage in 2024. Depositors in commercial banks, mobile money operators and non-interest banks are now insured up to ₦5m, while customers of microfinance banks, payment service banks and primary mortgage banks are covered up to ₦2m.
According to the NDIC, the expanded coverage protects about 99% of all depositors in Nigeria.
Mr Sunday said that when a bank fails, insured customers are paid promptly up to the guaranteed limit. Depositors with balances above that amount may receive additional payments later, once the failed bank’s assets have been recovered.
He cited recent cases involving the closure of Heritage Bank Limited, Union Homes Plc and Aso Savings and Loans Plc, where depositors were paid within days.
“In those cases, we used depositors’ BVNs as a unique identifier to locate their alternative bank accounts and transfer their funds quickly,” he said.
The NDIC also warned customers to stay informed and avoid fraudulent schemes, inviting members of the public to engage with the agency at the trade fair.
Nigeria’s banking sector has faced periods of stress in recent years, putting pressure on public trust. Speaking at the event, the President of the Kaduna Chamber of Commerce, Farouk Suleiman, praised the NDIC’s role, describing it as essential to maintaining confidence in the financial system.
The NDIC said it is working towards becoming a more technology-driven institution, focused not only on resolving bank failures but also on preventing them and strengthening trust in Nigeria’s financial system.
