The Nigeria Deposit Insurance Corporation (NDIC) and the Nigeria Inter-
Bank Settlement System (NIBSS) Plc. are set to sign a Memorandum of
Understanding (MoU) aimed at ensuring a more efficient process of
reimbursement of depositors in the event of bank failure.
This development was disclosed by the Managing Director/Chief
Executive of the NDIC, Mr. Thompson Oludare Sunday, during a
courtesy visit to the Corporation’s Head Office in Abuja by the NIBSS
Executive Management team led by its Managing Director/Chief
Executive, Mr. Premier Oiwoh.
Mr. Sunday commended NIBSS for its longstanding partnership and
invaluable contributions to strengthening the Corporation’s mandate of
protecting depositors and enhancing public confidence in the banking
system. He highlighted the pivotal role played by the NIBSS in driving
digital verification processes, particularly through the deployment of the
Bank Verification Number (BVN) platform, which enabled seamless
payment to the alternate bank accounts of depositors of failed Heritage
Bank Limited.
“You have been a reliable partner and NDIC remains committed to that
partnership. Without NIBSS’s support, it would have been difficult to
achieve the milestone we attained with the closure of failed Heritage
Bank despite the impromptu nature of the arrangement. That is why it is
important for us to concretise our partnership through this MoU”, the
NDIC MD/CE stressed.
Mr. Sunday highlighted key areas to be covered by the MoU such as
real-time synchronization of NDIC’s deposit registers and electronic
records to allow for swift verification of eligible accounts during bank
resolution; expansion of disbursement channels for depositor claims to
include Mobile Money Operators (MMOs) and possible NDIC-branded
mobile interface; and investment in Single Customer View (SCV) and
interoperability infrastructure for instant validation in the event of bank
failure.
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The NDIC Boss commended NIBSS for reforming the payments system
in Nigeria and putting it ahead of its peers in most part of the world,
adding that efforts of the NIBBS platform in mitigating frauds in the
financial system are laudable.
In his response, the NIBSS MD/CE, Mr. Premier Oiwoh, expressed
appreciation to the NDIC leadership for the sustained partnership that is
geared towards a safer and smooth payment system in Nigeria over the
years. He reaffirmed NIBSS’s full commitment to supporting the
Corporation in the delivery of its mandate of depositor protection,
emphasizing that NIBSS exists to serve Nigerians and stands ready to
provide the technological backbone required to enhance financial
system stability.
Mr. Oiwoh emphasized the critical importance of prompt and efficient
reimbursement during bank failures, noting that the NDIC’s efforts in this
regard directly contribute to public trust and financial inclusion. He
assured that his organisation is working closely with law-enforcement
agencies to proactively reinforce the safety of the nation’s payment
system, as well as strengthen its infrastructure to lower the cost of
transactions on its platforms.
The MoU between both institutions is expected to usher in a new era of
digitized, responsive, and technology-driven depositor reimbursement
process, ultimately reinforcing confidence in Nigeria’s financial safety-net
framework.
Hawwau Gambo,
Head, Communication & Public Affairs Department
December 17, 2025
www.ndic.gov.ng
