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NDIC and NIBSS seal plans to digitise depositor reimbursement for failed banks
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BVN-driven verification to enable faster, safer payouts to affected customers
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Mobile money, real-time data sync proposed to strengthen Nigeria’s financial safety net
The Nigeria Deposit Insurance Corporation (NDIC) and the Nigeria Inter-Bank Settlement System (NIBSS) have agreed to deploy a fully digitised framework to speed up and simplify the reimbursement of depositors whenever banks fail.
The plan was unveiled in Abuja during a courtesy visit by the NIBSS executive management team, led by its Managing Director and Chief Executive Officer, Mr Premier Oiwoh, to the NDIC headquarters. The NDIC Managing Director and Chief Executive Officer, Mr Thompson Oludare Sunday, disclosed the development while receiving the delegation.
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In a statement signed by the Head of Communication and Public Affairs at the NDIC, Hawwau Gambo, Sunday said the partnership was aimed at strengthening depositor protection and sustaining public confidence in Nigeria’s banking system through technology-driven solutions.
The statement reads partly: “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 failed Heritage Bank despite the impromptu nature of the arrangement. That is why it is important for us to concretise our partnership through this MoU.”
It further reads: “The role of NIBSS in digital verification, particularly through the BVN platform, has enabled seamless payment to alternate bank accounts of depositors. This collaboration will allow real-time synchronisation of deposit registers and faster verification of eligible claims.”
According to the NDIC boss, the proposed framework will include real-time alignment of NDIC deposit data with electronic banking records to hasten verification during bank resolution processes.
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He added that the partnership would also expand payment channels to cover mobile money operators and explore a possible NDIC-branded digital interface for claims.
Sunday also said investments would be made in Single Customer View and interoperability infrastructure to allow instant validation of depositor information whenever a bank fails. He commended NIBSS for reforms that have modernised Nigeria’s payments ecosystem and reduced fraud risks across the financial system.
Responding, NIBSS Managing Director Premier Oiwoh reaffirmed his organisation’s commitment to supporting NDIC in safeguarding depositors and maintaining financial stability. He said efficient reimbursement during bank failures was critical to public trust and financial inclusion.
Oiwoh noted that NIBSS was working closely with law enforcement agencies to reinforce payment system security, while also upgrading infrastructure to lower transaction costs and improve system resilience.
Both institutions expressed confidence that the collaboration would usher in a more responsive, technology-driven reimbursement process, reinforcing confidence in Nigeria’s financial safety-net architecture and ensuring depositors are paid promptly when banks fail.
