By Seun Ibiyemi
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 faster and more efficient reimbursement process for depositors in the event of bank failures.
This 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 significant contributions to strengthening NDIC’s mandate of depositor protection and boosting public confidence in the banking system.
He highlighted the critical role played by NIBSS in advancing digital verification processes, particularly through the Bank Verification Number (BVN) platform, which enabled seamless payments to alternate bank accounts of depositors of the failed Heritage Bank Limited.
According to him, the partnership proved crucial to the successful resolution of the Heritage Bank failure, despite the ad hoc nature of the arrangement.
He stressed the need to formalise the collaboration through the proposed MoU to enhance preparedness for future bank resolutions.
The NDIC boss said the MoU would cover key areas, including real-time synchronization of NDIC’s deposit registers and electronic records to enable swift verification of eligible accounts during bank failures.
Other areas include the expansion of disbursement channels for depositor claims to incorporate Mobile Money Operators (MMOs), the possible introduction of an NDIC-branded mobile interface, and investments in Single Customer View (SCV) and interoperability infrastructure for instant validation.
Mr. Sunday also praised NIBSS for its role in reforming Nigeria’s payments system, placing the country ahead of many peers globally, and for its efforts in mitigating fraud within the financial system.
In his response, the NIBSS MD/CE, Mr. Premier Oiwoh, expressed appreciation to the NDIC leadership for the sustained partnership focused on promoting a safe and efficient payment system in Nigeria.
He reaffirmed NIBSS’s commitment to supporting NDIC in the delivery of its depositor protection mandate and enhancing financial system stability.
Mr. Oiwoh emphasized the importance of prompt and efficient reimbursement during bank failures, noting that such efforts directly strengthen public trust and advance financial inclusion.
He added that NIBSS is working closely with law enforcement agencies to further secure the nation’s payment system and strengthen infrastructure to reduce transaction costs.
The proposed MoU is expected to usher in a new era of digitised, responsive, and technology-driven depositor reimbursement, reinforcing confidence in Nigeria’s financial safety-net framework.