NDIC Advises Customers to Open Alternative Accounts for Quicker Service Protect Deposits and Strengthen Financial Stability

The Nigeria Deposit Insurance Corporation (NDIC) has urged bank customers to open and maintain alternative accounts in other financial institutions with matching personal details, emphasizing that this measure ensures quick access to funds in the unlikely event of bank distress.

The advice was given by NDIC Managing Director and CEO, Mr. Thompson Oludare Sunday, during the Corporation’s Special Day at the 2025 Lagos International Trade Fair, themed “Connecting Business, Creating Value.” Represented by the Director of Claims Resolution, Mr. Kazeem Sule Olawale, he explained that the initiative is part of NDIC’s ongoing efforts to enhance depositor protection and boost public confidence in Nigeria’s financial system.

“Maintaining an alternative account in another bank with consistent personal information and a linked Bank Verification Number (BVN) ensures that depositors can access their funds efficiently in case of disruption,” he said.

By encouraging customers to take proactive measures, the NDIC not only protects individual savings but also strengthens the stability of the financial system. When depositors have access to their funds during crises, it reduces panic withdrawals, limits systemic shocks, and helps maintain the overall health and resilience of banks.

Sunday further urged depositors to safeguard their financial information, keep accurate records, and promptly report any irregularities to their banks. Banks, in turn, are required to resolve complaints within two weeks, with unresolved cases escalated to NDIC or the Central Bank of Nigeria (CBN).

Highlighting recent strides in deposit insurance, Sunday noted that the NDIC now insures depositors of Deposit Money Banks, Mobile Money Operators, and Non-Interest Banks up to ₦5,000,000, and Payment Service Banks, Microfinance Banks, and Primary Mortgage Banks up to ₦2,000,000. This expanded coverage protects approximately 99% of depositors, fostering trust in the banking system.

“In the rare case of a bank failure, depositors receive the insured portion first, while additional balances are paid from liquidation proceeds. This ensures fairness, transparency, and continued confidence in the financial system,” he explained.

By promoting responsible deposit management and enhancing access to insured funds, the NDIC’s guidance helps safeguard individual wealth, reduce economic disruption, and strengthen the stability of Nigeria’s banking sector, contributing to a healthier and more resilient economy overall.