NDIC Urges Nigerians to Keep Funds in Licensed Financial Institutions

Oru Leonard

The Nigeria Deposit Insurance Corporation (NDIC) has urged Nigerians to keep their money with licensed and regulated financial institutions to safeguard their savings against the risks associated with unregulated investment schemes.

The Managing Director/Chief Executive of the NDIC, Mr. Thompson Oludare Sunday, gave the advice on Wednesday, September 30, 2026, while delivering the keynote address at the Corporation’s Special Day during the 21st Abuja International Trade Fair.

The trade fair, organised by the Abuja Chamber of Commerce, Industry, Mines and Agriculture, is themed “Resilience: Trade, Taxation and the Economy.”
Sunday said the theme was particularly relevant to Nigeria’s ongoing economic transformation and efforts to build a stronger, more resilient and productive economy in line with the Federal Government’s vision of achieving a $1 trillion economy by 2030.

He said the NDIC had, for more than three decades, remained a critical pillar of Nigeria’s financial safety-net architecture through deposit guarantee, bank supervision in collaboration with the Central Bank of Nigeria (CBN), failure resolution and bank liquidation.

According to him, the Corporation’s responsibilities are directly connected to the resilience of the economy because businesses require a trusted financial system to safeguard working capital, facilitate payments and support access to credit for investment and expansion.The NDIC chief executive recalled that the Corporation enhanced deposit insurance coverage in 2024, raising the maximum insured limit to ₦5 million per depositor per Deposit Money Bank (DMB), and Mobile Money Operator (MMO).

He added that the coverage was increased to ₦2 million per depositor for Microfinance Banks (MFBs), Primary Mortgage Banks (PMBs) and Payment Service Banks (PSBs).

Sunday said the enhanced limits provide full coverage for more than 98 per cent of depositors across insured institutions, thereby helping to protect households, small businesses and other vulnerable depositors from the immediate consequences of bank failure.

He explained that depositors whose balances exceed the insured limits could still receive liquidation dividends from recoveries made through debts owed to failed institutions and the disposal of their physical assets.

“Our objective is straightforward: no depositor should lose confidence in the banking system merely because an insured institution has failed,” he said.

The NDIC boss also disclosed that the Corporation had transformed its depositor reimbursement process through the deployment of technology, including the Bank Verification Number (BVN), Single Customer View (SCV), NIBSS infrastructure and other digital solutions.

He said verified depositors of failed banks could now receive their insured deposits within days of bank closure, compared with the cumbersome manual processes of the past.

Sunday said the NDIC was repositioning itself from merely paying claims after bank failures to functioning as a “Risk Minimizer” capable of identifying vulnerabilities early, strengthening safeguards and preventing institutional problems from escalating into systemic crises.

He listed initiatives supporting this objective to include Risk-Based Supervision (RBS), an enhanced Differential Premium Assessment System (DPAS), the SCV Framework, distress resolution suites and the Bank Liquidation Management System (BLMS).

He added that the Corporation had also strengthened collaboration with the CBN and other members of Nigeria’s financial safety-net architecture.

The NDIC chief executive used the occasion to warn Nigerians against keeping substantial funds outside the formal financial system or entrusting their savings to unlicensed fund managers because of promises of unusually high returns.

He said the proliferation and collapse of Ponzi schemes had repeatedly demonstrated the financial and emotional consequences of putting hard-earned resources into unregulated schemes.
“If an investment promise sounds too good to be true, Nigerians should pause, ask questions and verify before committing their money,” he advised.

Sunday also announced that the Corporation launched an upgraded website on September 19, 2026, as part of efforts to make depositor protection more accessible, transparent and convenient.

He said the new website, www.ndic.gov.ng, serves as a digital gateway for depositors and other stakeholders, providing information on enhanced deposit insurance coverage limits, claims processing and institutions insured by the NDIC.According to him, the platform also features a Quick Action Bar providing direct access to four key services: File Claim, Check Banks, Report Failed Bank and FAQs.

The website also incorporates an AI-powered virtual assistant to facilitate faster access to information and improve interaction with users.
“This is more than a website upgrade. It is another step in our journey towards a more accessible, responsive and technology-driven NDIC,” he said.

He encouraged depositors, creditors and shareholders of closed banks to utilise the Corporation’s digital platforms when processing their claims.

He further advised depositors to ensure that their account information remained accurate and consistent across banks and properly linked to their BVNs to facilitate faster reimbursement.

Sunday stressed that technology and regulation alone could not guarantee financial security, describing financial literacy as the “first line of defence” for depositors and business owners.

He urged members of the public and businesses to improve their financial literacy, use digital financial services responsibly, maintain sound financial practices and seek guidance from relevant regulatory institutions when necessary.
“The more informed the public becomes, the stronger our collective capacity to build a resilient financial system,” he said.

He subsequently invited participants at the trade fair to visit the NDIC Pavilion, where officials were available to provide information on deposit insurance, depositor protection, claims processing, financial literacy and other services of the Corporation.

Sunday congratulated the Abuja Chamber of Commerce, Industry, Mines and Agriculture on the successful hosting of the 21st Abuja International Trade Fair and thanked exhibitors, participants, traditional rulers, guests and members of the media for attending the NDIC Special Day.