The Nigeria Deposit Insurance Corporation (NDIC) and the Nigeria Inter-Bank Settlement System (NIBSS) have announced plans to implement a more efficient, digitized process for reimbursing depositors in the event of bank failures.

The development was disclosed by NDIC Managing Director/CEO, Mr. Thompson Oludare Sunday, during a courtesy visit from NIBSS executives, led by MD/CEO Mr. Premier Oiwoh, to the NDIC headquarters in Abuja.

A statement by NDIC’s Head of Communication, Hawwau Gambo, highlighted Mr. Sunday’s praise for NIBSS’s role in enhancing depositor protection and public confidence in Nigeria’s banking system. He specifically noted NIBSS’s contribution through the Bank Verification Number (BVN) platform, which facilitated seamless payments to Heritage Bank depositors during the bank’s closure.

“You have been a reliable partner, and NDIC remains committed to that partnership. Without NIBSS’s support, achieving the milestone with Heritage Bank would have been difficult. This MoU is essential to formalize and expand that partnership,” Mr. Sunday said.

Key areas of collaboration include real-time synchronization of NDIC deposit registers, expansion of disbursement channels to incorporate Mobile Money Operators (MMOs) and a possible NDIC-branded mobile interface, and the development of Single Customer View (SCV) infrastructure for instant validation during bank resolutions.

Mr. Sunday also commended NIBSS for modernizing Nigeria’s payments system and for efforts in fraud prevention, which have positioned the country ahead of many global peers.

In response, Mr. Oiwoh reiterated NIBSS’s commitment to providing the technological support necessary for a safe and efficient payment system. He emphasized that digitized and prompt reimbursement during bank failures is crucial for public trust, financial inclusion, and overall stability in Nigeria’s financial sector.

The partnership between NDIC and NIBSS is expected to usher in a new era of technology-driven depositor reimbursement, strengthening confidence in Nigeria’s financial safety-net framework.