NDIC, NIBSS Move to Fast-Track Depositor Refund
By Patience Ikpeme
The Nigeria Deposit Insurance Corporation (NDIC) and the Nigeria Inter-Bank Settlement System (NIBSS) Plc are moving to formalise a strategic partnership designed to significantly improve the speed, accuracy and reliability of depositor reimbursement whenever banks fail, signalling a major shift towards a more technology-driven financial safety net.
The proposed Memorandum of Understanding (MoU) is expected to deepen collaboration between both institutions by introducing a digitised and responsive framework for reimbursing depositors, reducing delays that often accompany bank resolution processes.
Central to the arrangement is the real-time synchronisation of NDIC’s deposit registers and electronic records, which would allow for swift verification of eligible accounts immediately a bank is closed.
Details of the planned agreement were disclosed on Wednesday by the Managing Director and Chief Executive Officer of the NDIC, Mr. Oludare Sunday, during a courtesy visit to the corporation’s headquarters in Abuja by the NIBSS executive management team led by its MD/CEO, Mr. Premier Oiwoh.
In a statement issued by the Head of Communication and Public Affairs at the NDIC, Hawwau Gambo, Sunday explained that the MoU would also broaden payment channels for depositor claims by bringing Mobile Money Operators into the reimbursement process.
He noted that the corporation is also considering the development of a possible NDIC-branded mobile interface to further accelerate payments to depositors.
According to the NDIC boss, the partnership would support investments in Single Customer View and interoperability infrastructure, ensuring that depositor information can be instantly validated during bank resolution. This, he said, would reduce manual processes and strengthen the overall efficiency of depositor protection in Nigeria.
Sunday pointed to the critical role NIBSS has played in strengthening digital verification across the banking system, particularly through the Bank Verification Number (BVN) platform. He said the BVN framework was instrumental in enabling the seamless reimbursement of depositors of the recently failed Heritage Bank Limited, as payments were made directly into depositors’ alternate bank accounts.
“You have been a reliable partner, and NDIC remains committed to that partnership. Without NIBSS’s support, it would have been difficult to achieve the milestone we attained with the closure of Heritage Bank despite the impromptu nature of the arrangement,” Sunday said.
“That is why it is important for us to concretise our partnership through this MoU,” he added.
The NDIC chief also praised NIBSS for transforming Nigeria’s payment system and placing it ahead of many peers globally. He noted that the platform has contributed significantly to fraud mitigation across the financial system, thereby strengthening trust among users and institutions alike.
Responding, the NIBSS Managing Director and Chief Executive Officer, Premier Oiwoh, said his organisation remains fully committed to supporting the NDIC in carrying out its depositor protection mandate.
He described NIBSS as an institution that exists to serve Nigerians and pledged continued provision of the technological backbone required to promote stability in the financial system.
Oiwoh stressed that timely and efficient reimbursement during bank failures is essential to sustaining public confidence in the banking sector and advancing financial inclusion. He noted that NDIC’s reimbursement activities play a direct role in reinforcing trust in the system, especially among small depositors who are often the most vulnerable during bank closures.
He further disclosed that NIBSS is working closely with law enforcement agencies to proactively strengthen the security of Nigeria’s payment infrastructure, while at the same time upgrading its systems to reduce transaction costs across its platforms.
With the proposed MoU, both institutions are expected to institutionalise their collaboration, ensuring that depositor reimbursements are processed faster, safer and with greater transparency whenever bank failures occur, while reinforcing confidence in Nigeria’s financial system.
