BVN Enables Quick Refunds After Bank Failures — NDIC

The Nigeria Deposit Insurance Corporation (NDIC) has reaffirmed its commitment to financial stability in the banking sector.

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The Managing Director and Chief Executive of the Corporation, Mr Thompson Oludare Sunday, disclosed this at the NDIC Special Day at the 37th Enugu International Trade Fair in Enugu.

Represented by Mrs Gimbo Hawa, a Director of NDIC, Sunday revealed that its current insurance hooks protected approximately 99 per cent of depositors in the country’s banking system.

Speaking on the theme, “Empowering MSMEs for Global Competitiveness,” Sunday emphasised that the Corporation remained the bedrock for small businesses by safeguarding their capital against bank distress.

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The NDIC boss noted that the Corporation proactively enhanced its coverage limits in 2024 to reflect economic realities.

“Currently, depositors of Deposit Money Banks (DMBs), Mobile Money Operators, and Non-Interest Banks are insured up to N5m, while those in Microfinance and Primary Mortgage Banks are covered up to N2m”.

​Explaining the “magic” behind the reimbursement process, Sunday clarified that the NDIC did not rely on government intervention to pay depositors.

Instead, it utilised the Deposit Insurance Fund (DIF), a pool of resources built from premiums paid by licensed banks.

“This system ensures that the Corporation can respond swiftly without straining the national budget,” he said.

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The Managing Director further highlighted the role of technology in modernising claims.

He revealed that the Bank Verification Number (BVN) now served as a primary tool for “automatic” reimbursement.

According to him, by using the BVN to locate alternative accounts, the NDIC can often credit depositors within days of a bank’s closure, bypassing the bureaucratic delays of the past.

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For high-net-worth individuals with balances exceeding the insured limits, the MD offered reassurances that their funds were not lost.

He explained the concept of “liquidation dividends,” which are payments made from the recovery of debts and the sale of physical assets belonging to failed institutions.

He urged bank depositors to ensure the linkage of their bank accounts with their Bank Verification Number (BVN) to facilitate easy payment in the event of a bank failure.

Earlier, the President of the Enugu Chamber of Commerce, Mr Nnanyelugo Onyemelukwe, said that NDIC’s proactive oversight had spared Nigerians the “harrowing experience” of losing their savings, especially during the current period of economic hardship.

​Onyemelukwe expressed deep appreciation for the NDIC’s consistent participation in the fair, noting that the corporation’s presence had helped bring its vital activities to the “greater purview” of the Nigerian public.

“The NDIC remains a beacon of hope for depositors, acting as a final safety net when financial institutions are mismanaged or forced to close,” he said.