The Nigeria Deposit Insurance Corporation has disclosed that it has paid a cumulative N69.65bn to insured depositors of failed financial institutions, as part of efforts to protect bank customers and strengthen confidence in the banking system.
The Director of Strategy Development at the NDIC, Mrs Gwa Uduak, disclosed this on Thursday during the opening ceremony of the corporation’s 2026 Customer Service Week commemoration in Abuja.
“Cumulative payments to insured depositors have reached N69.65bn,” Uduak said, adding that the corporation had also made payments to uninsured depositors through its bank liquidation activities.
She explained that the payments reflected the corporation’s commitment to protecting depositors and reducing the financial hardship associated with bank failures. “Behind every payment is a depositor, a family, or a business seeking assurance at a time of financial uncertainty,” she said.
Uduak noted that the NDIC’s responsibilities included deposit guarantees, banking supervision, the resolution of distressed financial institutions, and the liquidation of failed banks.
She explained that the corporation conducted periodic examinations of banks and collaborated with the Central Bank of Nigeria to implement coordinated resolution frameworks aimed at preventing failures and maintaining financial stability.
Further details of the corporation’s payments were contained in a video presentation played during the event. According to the presentation, the NDIC paid N1.48bn 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, among others.
The corporation also disclosed that it paid N1.15bn to 1,082 depositors of Union Homes Savings and Loans Plc and N313.02m to 8,248 depositors of Aso Savings and Loans Plc under its accelerated payment programme in 2026.
The presentation showed that the NDIC leveraged Bank Verification Number validation through the Nigeria Inter-Bank Settlement System to identify depositors and obtain alternative bank account details for faster settlement. It added that insured deposit payments now commence within three days of the revocation of banking licences for newly closed banks.
Speaking at the event, the NDIC Managing Director and Chief Executive Officer, Thompson Sunday, said the corporation remained committed to strengthening depositor protection and improving service delivery.
“For close to four decades now, from 1988 to this period, the NDIC has played a role in safeguarding the confidence that underpins the Nigerian financial system,” he said.
Sunday disclosed that the corporation had embarked on an institutional transformation initiative known as NDIC Ascend to improve operational processes, strengthen collaboration and integrate technology into service delivery. He stressed that the corporation’s effectiveness depended on its ability to respond promptly to the needs of depositors and other stakeholders.
Source: Punch. This story was rewritten from the original report.
Image: Punch
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