NDIC boosts depositors’ confidence in Kano

The Nigeria Deposit Insurance Corporation (NDIC) has reiterated its commitment to protecting depositors’ funds and strengthening public confidence in the banking system as it convened a stakeholders’ town hall meeting in Kano on Monday.

The meeting, with the theme: “Strengthening Depositor Confidence: NDIC’s Role in Financial System Stability and Consumer Protection,” brought together regulators, financial institutions, traders’ associations, civil society groups, academics, students and the media.

Speaking at the forum, the Controller of NDIC Kano Zonal Office, Ahmad Umar, said the engagement was aimed at deepening public understanding of deposit insurance and reassuring depositors that their savings in licensed banks are protected.

Umar explained that the NDIC serves as a safety net for bank customers, ensuring prompt payment of insured deposits in the event of bank failure, while also pursuing liquidation dividends for depositors with balances above the insured limit.

He said Kano, as a major commercial hub, requires a high level of trust in the financial system to sustain trade, entrepreneurship and economic growth.

“The assurance that savings are protected encourages traders, artisans and households to participate actively in the formal financial system,” he said.

In her overview of the programme, the Head of Communication and Public Affairs Department of the NDIC, Hawwau Gambo, said recent developments in the banking sector, including licence revocations by the Central Bank of Nigeria (CBN) and ongoing bank recapitalisation efforts, had heightened public interest and misconceptions about deposit insurance.

She said the town hall meetings, starting with Kano, Enugu and Lagos, were designed as interactive platforms to clarify issues, address concerns and strengthen trust in the financial system.

Delivering the keynote address, the Executive Director, Corporate Services, NDIC, Mrs Emily C. Osuji, said the corporation was intensifying stakeholder’s engagement to dispel misconceptions about the scope and benefits of deposit insurance.

Osuji disclosed that the NDIC enhanced its maximum deposit insurance coverage in 2024, increasing coverage for depositors of Deposit Money Banks, Mobile Money Operators and Non-Interest Banks to N5 million, while depositors of Microfinance Banks, Primary Mortgage Banks and Payment Service Banks are now insured up to N2 million.

According to her, the expanded coverage protects about 99 per cent of depositors nationwide and is aimed at protecting small savers, promoting financial inclusion and boosting confidence in the banking sector.

She cited the prompt payment of depositors of defunct Heritage Bank Limited, Union Homes Plc and Aso Savings and Loans Plc as evidence of improved payout processes, noting that the use of Bank Verification Numbers (BVN) enabled depositors to receive their funds within days of bank closures.

Osuji urged depositors to ensure their BVN details are properly linked to their bank accounts to facilitate seamless access to insured funds when necessary.

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