By Seun Ibiyemi
The Nigeria Deposit Insurance Corporation (NDIC) has paid a cumulative N69.65 billion to insured depositors of failed financial institutions, reinforcing efforts to protect customers and sustain confidence in Nigeria’s banking system.
The Director of Strategy Development at the NDIC, Gwa Uduak, disclosed this on Thursday during the opening of the corporation’s 2026 Customer Service Week in Abuja, where she outlined measures introduced to improve depositor protection and accelerate claims settlement.
Uduak said the corporation had also made payments to uninsured depositors through its bank liquidation activities, noting that the interventions were designed to reduce the impact of financial institution failures on customers.
According to her, the NDIC’s mandate covers deposit insurance, banking supervision, the resolution of distressed financial institutions and the liquidation of failed banks.
Figures presented at the event showed that the corporation had paid N1.48 billion to 10,312 insured depositors of 47 failed microfinance banks as of July 31, 2026.
The affected institutions included Abia SME Microfinance Bank, Frontline Microfinance Bank and Goldman Microfinance Bank.
The NDIC also paid N1.15 billion to 1,082 depositors of Union Homes Savings and Loans Plc and N313.02 million to 8,248 depositors of Aso Savings and Loans Plc under its accelerated payment programme in 2026.
The payments highlight the corporation’s role in cushioning depositors against losses arising from the failure of insured financial institutions and maintaining confidence in the financial system.
As part of efforts to improve service delivery, the corporation said it had deployed Bank Verification Number (BVN) validation through the Nigeria Inter-Bank Settlement System to verify depositors and obtain alternative bank account details.
The initiative is intended to simplify the verification process and enable faster settlement of claims.
The NDIC further disclosed that insured deposit payments for newly closed banks now commence within three days of the revocation of their banking licences.
The development represents a shift towards quicker intervention for depositors affected by bank closures, reducing delays associated with claims verification and payment processing.
Speaking at the event, the NDIC Managing Director and Chief Executive Officer, Thompson Sunday, reaffirmed the corporation’s commitment to strengthening depositor protection and improving customer experience.
Sunday said the corporation had contributed to safeguarding confidence in Nigeria’s financial system since its establishment in 1988.
He also announced that the NDIC had commenced an institutional transformation programme, known as NDIC Ascend, aimed at improving operational processes, strengthening collaboration and integrating technology into service delivery.
According to him, the corporation’s effectiveness depends largely on its ability to respond promptly to depositors and other stakeholders.
The Acting National Coordinator and Chief Executive Officer of SERVICOM, Helen Lawal, urged the NDIC to strengthen its complaint-resolution mechanisms and deepen engagement with customers.
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Lawal commended the corporation for introducing its Service Level Agreement Management System, designed to monitor departmental performance against agreed service delivery standards.
The Head of the NDIC SERVICOM Unit, Chinyere Ogunsakin, said the Customer Service Week offered an opportunity to recognise staff contributions and strengthen engagement with stakeholders.
The 2026 celebration, themed “The Extra Mile,” focused on the need for service providers to consistently exceed customer expectations.
The corporation’s presentation also showed the scale of its supervisory responsibilities across Nigeria’s financial services industry.
The NDIC provides supervisory oversight for 37 deposit money banks, 32 primary mortgage banks, 813 microfinance banks, five payment service banks and 30 mobile money operators.
The breadth of the institutions under its oversight underscores the importance of effective supervision, deposit insurance and timely intervention in protecting customers and supporting financial system stability.
With its accelerated claims settlement process and NDIC Ascend transformation programme, the corporation is seeking to strengthen depositor confidence while improving the efficiency of its operations and responsiveness to customers.
