The Nigeria Deposit Insurance Corporation (NDIC) and the Nigeria Inter-Bank Settlement System (NIBSS) Plc have concluded plans to sign a Memorandum of Understanding (MoU) to enhance the speed and efficiency of depositor reimbursement in the event of bank failure.
The Managing Director and Chief Executive of NDIC, Mr. Thompson Oludare Sunday, disclosed this during a courtesy visit by the NIBSS Executive Management team, led by its Managing Director and Chief Executive, Mr. Premier Oiwoh, to the NDIC Head Office in Abuja.
Mr. Sunday commended NIBSS for its long-standing partnership and contributions to strengthening depositor protection and boosting public confidence in the banking system.
He highlighted NIBSS’s role in digital verification, particularly through the Bank Verification Number (BVN) platform, which facilitated seamless payments to depositors of the failed Heritage Bank Limited.
According to him, NIBSS’s support was critical to the successful resolution of the Heritage Bank failure, despite the impromptu nature of the arrangement.
He said the planned MoU would help formalise and deepen the partnership.
The NDIC boss explained that the MoU would cover areas such as real-time synchronisation of NDIC deposit registers for swift verification of eligible accounts, expansion of disbursement channels to include Mobile Money Operators, and possible deployment of an NDIC-branded mobile interface.
Other areas include investment in Single Customer View and interoperability infrastructure for instant account validation.
Mr. Sunday also praised NIBSS for reforming Nigeria’s payment system and for its efforts in fraud mitigation, noting that the country’s payments infrastructure now compares favourably with global standards.
In his response, Mr. Oiwoh expressed appreciation for the partnership with NDIC and reaffirmed NIBSS’s commitment to supporting depositor protection and financial system stability.
He stressed the importance of prompt reimbursement during bank failures, noting that it enhances public trust and financial inclusion.
He added that NIBSS is working with law enforcement agencies to strengthen payment system security and reduce transaction costs.
The proposed MoU is expected to usher in a more digitised, responsive and technology-driven depositor reimbursement process in Nigeria.
Reporting by Sherifat Oyediran