NDIC, NIBSS To Sign Landmark MoU to Fast-Track Depositor Reimbursements

The Nigeria Deposit Insurance Corporation (NDIC) and the Nigeria Inter-Bank Settlement System (NIBSS) Plc. are finalized to sign a Memorandum of Understanding (MoU) designed to revolutionize the reimbursement process for depositors in the event of bank failures. 

The announcement was made by the NDIC Managing Director/Chief Executive, Mr. Thompson Oludare Sunday, during a high-level visit from the NIBSS executive management team, led by its MD/CE, Mr. Premier Oiwoh, to the NDIC headquarters in Abuja.

The partnership aims to leverage technology to ensure that Nigerians do not suffer long delays in accessing their funds if a financial institution is liquidated. This move follows the successful deployment of NIBSS's Bank Verification Number (BVN) platform, which facilitated seamless payments to depositors of the recently failed Heritage Bank Limited.

 "Without NIBSS’s 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 our partnership through this MoU."

 Mr. Thompson Oludare Sunday, MD/CE NDIC

The agreement will focus on digitizing the "Single Customer View" (SCV) framework to ensure that the NDIC can validate and pay depositors almost instantaneously.

 Constant updates of NDIC’s deposit registers and electronic records to allow for swift verification during bank resolutions.

Expanded Disbursement Channels: Payouts will no longer be limited to traditional banks but will expand to include Mobile Money Operators (MMOs) and potentially an NDIC-branded mobile interface.

 Continued investment in interoperability infrastructure to validate accounts and prevent fraudulent claims during the reimbursement process.

The MD/CE of NIBSS, Mr. Premier Oiwoh reaffirmed his organization’s commitment to providing the technological backbone necessary to protect depositors and enhance public trust.

 NIBSS is currently working to strengthen its infrastructure to lower transaction costs and enhance system safety.

 The organization is collaborating closely with law enforcement agencies to proactively secure the nation’s payment ecosystem.

 Mr. Oiwoh noted that prompt reimbursement is a critical driver of financial inclusion and overall stability in the Nigerian economy.

The goal method with expected outcome faster Payouts in real-time data synchronization Instant validation of depositor claims

Increased Access Inclusion of MMOs/Digital Wallets Reaching unbanked or remote depositors

System Security BVN-linked verification Drastic reduction in reimbursement fraud

Efficiency Single Customer View (SCV) Lower administrative costs for bank resolution

The formal signing of this MoU is expected to usher in a new era of responsive, technology-driven depositor protection, reinforcing the resilience of Nigeria’s financial sector.