How BVN helped failed bank depositors recover money - NDIC

The Nigeria Deposit Insurance Corporation, NDIC, has urged all depositors to ensure that their Bank Verification Numbers, BVN, are adequately linked to all their bank accounts to enable the depositors access their funds in the event of any bank failure.

NDIC Executive Director of Operations, Dr. Kabir Katata, made the urge during the Corporation's 2025 town hall meeting in Enugu, on Wednesday.

Katata stated that the NDIC has continued to improve its payout processes to ensure that depositors have timely access to their funds and has upgraded deposit insurance to N5 million and N2 million, respectively, for different categories of depositors.

Katata disclosed that there was evident and prompt payment of depositors of the defunct Heritage Bank Limited, Union Homes Plc and Aso Savings and Loans Plc, where the Corporation used the Bank Verification Number (BVN) of depositors as a unique identifier to locate their alternate accounts into which their claims were transferred. 

"This enabled the payment of claims within days of the banks' closure. I, therefore, urge all depositors to ensure that their BVN is properly linked to their bank accounts and identity records, as this greatly facilitates seamless and timely access to insured deposits in the event of bank failure," Katata urged.

He further disclosed that in line with the NDIC commitment to strengthening depositor protection, the Corporation enhanced the maximum deposit insurance coverage since 2024, making depositors of Deposit Money Banks, Mobile Money Operators and Non-Interest Banks to be insured up to N5 million, while depositors of Microfinance Banks, Primary Mortgage Banks and Payment Service Banks are covered up to N2 million. 

"This means that in the event of a bank failure, depositors are promptly paid up to the insured limit, while depositors with account balances in excess of the insured limit are paid the initial insured sum, with the remaining balances paid as liquidation dividends upon the realization of the bank's assets and recovery of debts owed to the bank."