NDIC, NIBSS move to fast-track depositors’ payouts in bank failures

The Nigeria Deposit Insurance Corporation (NDIC) and the Nigeria Inter-Bank Settlement System (NIBSS) Plc are set to formalise a strategic partnership aimed at dramatically improving the speed, accuracy, and reliability of depositor reimbursement in the event of bank failures, it has emerged.

The Memorandum of Understanding (MoU) would strengthen Nigeria’s financial safety-net framework by introducing a more digitised, responsive, and technology-driven process for reimbursing depositors of failed banks.

The agreement would focus on real-time synchronisation of NDIC’s deposit registers and electronic records to enable swift verification of eligible accounts during bank resolution.

The planned MoU was disclosed on Wednesday by the Managing Director and Chief Executive Officer (MD/CEO) of the NDIC, Oludare Sunday, during a courtesy visit to the Corporation’s headquarters in Abuja by the NIBSS Executive Management team led by its MD/CEO, Premier Oiwoh.

According to the NDIC boss in a statement on Wednesday by Hawwau Gambo, the Head, Communication and  Public Affairs Department at the corporation, the MoU will also expand disbursement channels for depositor claims to include Mobile Money Operators, with consideration for a possible NDIC-branded mobile interface to facilitate faster payments.

He added that the partnership would support investment in Single Customer View and interoperability infrastructure to ensure instant validation of depositor information when banks fail.

Sunday highlighted the pivotal role of NIBSS in strengthening digital verification processes in Nigeria’s banking system, particularly through the Bank Verification Number platform.

He said the BVN system enabled the seamless reimbursement of depositors of the failed Heritage Bank Limited by allowing payments to be 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.

“That is why it is important for us to concretise our partnership through this MoU,” he noted.

The NDIC boss also commended NIBSS for reforming Nigeria’s payment system and positioning it ahead of many peers globally, noting that the platform has played a significant role in mitigating fraud across the financial system.

Responding, NIBSS CEO, Premier Oiwoh, reaffirmed his organisation’s commitment to supporting the NDIC in the discharge of its depositor protection mandate. He said NIBSS exists to serve Nigerians and remains ready to provide the technological backbone required to enhance stability in the financial system.

Oiwoh stressed that prompt and efficient reimbursement during bank failures is critical to sustaining public confidence and advancing financial inclusion, adding that NDIC’s reimbursement efforts directly strengthen trust in the banking system.

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He further disclosed that NIBSS is working closely with law enforcement agencies to proactively reinforce the safety of Nigeria’s payment infrastructure, while also upgrading its systems to reduce transaction costs across its platforms.

The planned MoU is expected to institutionalise collaboration between both agencies, ensuring faster, safer and more transparent reimbursement of depositors whenever bank failures occur.