The Nigeria Deposit Insurance Corporation (NDIC) has urged bank customers across the country to maintain alternative accounts in other financial institutions as a precautionary measure to enable faster access to refunds in the event of a bank failure.
This advice was given by the NDIC Managing Director and Chief Executive, Mr. Thompson Sunday, during the Corporation’s Special Day at the 2025 Lagos International Trade Fair themed “Connecting Business, Creating Value.”
He explained that having an NDIC alternative account would enhance the efficiency of depositor reimbursements and strengthen overall confidence in Nigeria’s financial system.
Represented by the Director of Claims Resolution, Mr. Kazeem Olawale, the NDIC boss noted that while the Nigerian banking system remains stable and resilient, preparedness remains vital.
He emphasized that both banks and depositors share the responsibility of ensuring that funds remain protected and accessible in unforeseen circumstances.
“The safety of bank deposits is a shared responsibility among banks, regulators, and depositors themselves,” Sunday stated.
“Every depositor should ensure their Bank Verification Number (BVN) is properly linked to all their accounts and that they maintain an alternate account with matching details in another bank.
This step will allow the NDIC to facilitate prompt reimbursement if the need ever arises.”
Strengthening Protection Through NDIC Alternative Accounts
The NDIC alternative accounts initiative is designed to enhance financial inclusion, customer confidence, and system reliability.
By encouraging depositors to hold at least one additional linked account, the NDIC aims to eliminate the delays that sometimes occur during claims processing when banks face distress.
According to Sunday, depositors must also take responsibility for updating their personal information and protecting their accounts from unauthorized access.
He advised customers to be proactive in reporting suspicious transactions to their banks for immediate resolution.
“Banks are required to resolve customer complaints within two weeks.
If issues remain unresolved, customers can escalate their complaints directly to the NDIC or the Central Bank of Nigeria through the proper channels,” he added.
The NDIC Managing Director further disclosed that the Corporation has enhanced its deposit insurance coverage to better protect Nigerians.
Depositors in Deposit Money Banks, Non-Interest Banks, and Mobile Money Operators are now insured up to ₦5 million per depositor.
Those in Payment Service Banks, Microfinance Banks, and Primary Mortgage Banks are covered up to ₦2 million.
This expanded insurance coverage, according to him, means that nearly 99 per cent of depositors are fully protected under the NDIC’s safety net.
“In rare cases where a bank fails, depositors whose balances exceed the insured limit will first receive payments up to the insured amount, while additional funds will be refunded through liquidation dividends from the failed bank’s assets,” he explained.
NDIC Reinforces Confidence in the Financial Sector
The NDIC chief assured the public that the Corporation remains committed to maintaining financial stability and protecting depositors from systemic shocks.
He stressed that the NDIC alternative accounts measure aligns with broader financial reforms aimed at increasing efficiency and public trust.
Over the years, the NDIC has played a vital role in stabilizing Nigeria’s banking sector by insuring deposits, managing bank resolutions, and ensuring accountability within the financial system.
Sunday stated that the Corporation’s continued improvements in coverage and processes reflect its readiness to adapt to changing realities in the financial services landscape.
“Our goal is not only to protect depositors but also to promote stability and trust in the financial system.
The NDIC will continue to partner with the Central Bank of Nigeria, commercial banks, and other stakeholders to strengthen this framework,” he said.
Private Sector Endorsement
During the event, the Deputy President of the Lagos Chamber of Commerce and Industry (LCCI), Mr. Leye Kupoluyi, commended the NDIC for its continued role in safeguarding Nigeria’s banking ecosystem.
He noted that the Corporation has become a trusted institution for both businesses and individuals.
Kupoluyi said, “The NDIC is more than just insurance for our deposits — it is the assurance of our banking system.
Your consistent public engagement and commitment to deposit safety have enhanced confidence and sustained economic activities in Nigeria.”
He also highlighted that the 2025 Lagos International Trade Fair theme underscored the importance of collaboration and shared responsibility between regulators and the business community.
According to him, initiatives such as NDIC alternative accounts encourage innovation, trust, and transparency in financial transactions, all of which are vital to wealth creation and sustainable business growth.
Enhancing Financial Literacy and Transparency
Beyond deposit insurance, the NDIC continues to emphasize financial literacy among Nigerians.
The Corporation has launched awareness campaigns across states to educate the public on how deposit insurance works and the steps depositors should take to secure their funds.
Experts note that the NDIC alternative accounts policy could become a significant pillar in the country’s financial protection framework, reducing risks associated with single-bank dependence.
By fostering collaboration between banks and depositors, it could also promote greater participation in formal banking services, particularly among small business owners and rural dwellers.
As Nigeria’s financial system expands and new digital banking models emerge, the NDIC’s proactive stance underscores the importance of safety, transparency, and innovation.
The call for customers to maintain NDIC alternative accounts reflects a forward-looking approach that prioritizes depositor protection and resilience in the banking sector.
With enhanced insurance coverage, improved complaint resolution systems, and greater collaboration among regulators, Nigeria’s banking environment appears better equipped to weather financial uncertainties — reaffirming public trust in the NDIC’s role as both an insurer and a guardian of depositor confidence.
