The Nigeria Deposit Insurance Corporation (NDIC) and the Nigeria Inter-Bank Settlement System (NIBSS) Plc are set to significantly enhance depositor protection in Nigeria with plans to sign a Memorandum of Understanding (MoU) designed to fast-track and digitise reimbursement processes in the event of bank failures.
The proposed MoU was disclosed by the Managing Director and Chief Executive Officer of the NDIC, Mr. Thompson Oludare Sunday, during a courtesy visit to the Corporation’s Head Office in Abuja by the NIBSS Executive Management team, led by its Managing Director and Chief Executive Officer, Mr. Premier Oiwoh.
Speaking at the meeting, Mr. Sunday praised NIBSS for its long-standing collaboration with the NDIC, noting that the partnership has been central to strengthening public confidence in the banking system. He highlighted the pivotal role of NIBSS’s digital infrastructure, particularly the Bank Verification Number (BVN) platform, which enabled the seamless verification and payment of insured deposits to customers of the defunct Heritage Bank Limited through alternate bank accounts.
According to him, the experience from the Heritage Bank resolution demonstrated the need to formalise and deepen the collaboration. “NIBSS has remained a reliable partner, and NDIC is committed to sustaining that relationship. Without its support, achieving the milestone recorded in the closure of Heritage Bank would have been extremely challenging, given the impromptu nature of the arrangement. This MoU will help institutionalise our cooperation and ensure preparedness for future bank resolutions,” Mr. Sunday said.
He explained that the MoU would focus on key areas such as real-time synchronisation of NDIC’s deposit registers and electronic records to enable swift verification of eligible depositors during bank failures. Other areas include expanding reimbursement channels to incorporate Mobile Money Operators (MMOs), exploring the deployment of an NDIC-branded mobile interface, and investing in Single Customer View (SCV) and interoperability infrastructure to support instant validation of depositor claims.
Mr. Sunday also commended NIBSS for its role in reforming Nigeria’s payment system and placing it on a competitive global footing, while acknowledging its contribution to fraud mitigation and overall financial system stability.
In his remarks, the NIBSS MD/CEO, Mr. Premier Oiwoh, expressed appreciation to the NDIC leadership for sustaining a partnership anchored on ensuring a safe, efficient, and resilient payment system. He reaffirmed NIBSS’s full commitment to supporting NDIC’s depositor protection mandate, emphasising that the organisation exists to provide the technological backbone required to safeguard Nigeria’s financial ecosystem.
Mr. Oiwoh stressed that prompt and efficient reimbursement during bank failures is critical to maintaining public trust and deepening financial inclusion. He added that NIBSS is working closely with law enforcement agencies to proactively strengthen the security of the national payment infrastructure, while also upgrading its platforms to reduce transaction costs across the financial system.
Reacting to the development, economist Celestine Ukpong described the planned MoU as a “major confidence-boosting intervention” for Nigeria’s banking sector. He noted that delays in depositor reimbursement often worsen panic during bank failures. “A framework that enables near-instant verification and payment will not only protect depositors but also reduce systemic risk. When people trust that their funds are safe, the likelihood of bank runs diminishes significantly,” Ukpong said.
Also commenting, Peter Adebayo, FCA, said the collaboration reflects a maturing financial safety-net architecture in Nigeria. According to him, the integration of NDIC’s resolution framework with NIBSS’s payment infrastructure will improve transparency, accountability, and speed in bank failure resolutions. “From a financial governance perspective, this MoU strengthens confidence in regulatory coordination and ensures that depositor reimbursements are handled in a more orderly and technology-driven manner,” he stated.
In a statement issued by the Head of Communication and Public Affairs Department of the NDIC, Mrs. Hawwau Gambo, the Corporation said the MoU is expected to usher in a new era of digitised, responsive, and technology-driven depositor reimbursement processes. She added that the initiative would further reinforce confidence in Nigeria’s financial safety-net framework and strengthen the protection of depositors across the country.
NDIC and NIBSS plan to sign a strategic MoU to fast-track depositor reimbursements using digital platforms. Experts say the move will boost public confidence, strengthen financial stability, and modernise Nigeria’s banking safety-net framework.
Discover more from Ameh News
Subscribe to get the latest posts sent to your email.
