The Nigeria Deposit Insurance Corporation and the Nigeria Inter-Bank Settlement System Plc are set to formalise a new partnership aimed at significantly improving the speed and efficiency of reimbursing depositors whenever banks fail.
The planned collaboration, to be sealed through a Memorandum of Understanding, was disclosed on Tuesday by the Managing Director and Chief Executive of the NDIC, Mr Thompson Oludare Sunday, during a courtesy visit by the NIBSS executive management team to the Corporation’s headquarters in Abuja.
Sunday said the MoU would strengthen the NDIC’s capacity to verify and pay insured depositors promptly, leveraging NIBSS’ digital payment and verification infrastructure to reduce delays often associated with bank resolutions.
He commended NIBSS for its long-standing support, noting that the organisation played a crucial role in the seamless reimbursement of depositors following the failure of Heritage Bank Limited.
According to him, the deployment of the Bank Verification Number platform by NIBSS enabled the NDIC to pay depositors directly into their alternate bank accounts, despite the “impromptu nature” of arrangements surrounding the bank’s closure.
“You have been a reliable partner and NDIC remains committed to that partnership. Without NIBSS’ support, it would have been difficult to achieve the milestone we attained with the closure of Heritage Bank
“. That is why it is important for us to concretise this partnership through a formal MoU,” Sunday said.
He explained that the agreement would cover real-time synchronisation of NDIC’s deposit registers and electronic records to allow swift verification of eligible accounts during bank failures.
Other key areas include the expansion of payout channels to accommodate Mobile Money Operators and the possible introduction of an NDIC-branded mobile interface for depositor claims.
Sunday also disclosed plans to deepen investment in Single Customer View and interoperability infrastructure to enable instant validation of depositor information when banks are resolved.
The NDIC boss praised NIBSS for reforms that have transformed Nigeria’s payments system and positioned it competitively on the global stage, adding that its efforts in fraud mitigation have enhanced confidence in the financial system.
In his response, the Managing Director and Chief Executive of NIBSS, Mr Premier Oiwoh, reaffirmed his organisation’s commitment to supporting the NDIC in fulfilling its mandate of depositor protection.
Oiwoh stressed that prompt and efficient reimbursement during bank failures is critical to maintaining public trust and promoting financial inclusion, noting that NIBSS exists primarily to serve Nigerians.
He said the company was working closely with law enforcement agencies to further secure the nation’s payment infrastructure, while also strengthening its systems to reduce transaction costs across its platforms.
The proposed MoU is expected to usher in a more digitised, responsive and technology-driven depositor reimbursement process, reinforcing confidence in Nigeria’s financial safety-net framework and the stability of the banking system.
The visit was attended by senior officials of both institutions, including the Executive Director, Corporate Services, NDIC, Mrs Emily Osuji, and the Deputy General Manager, Enterprise Support Services, NIBSS, Mr Bola Enigbokan.
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