The Nigeria Deposit Insurance Corporation (NDIC) has advised bank customers to operate alternate accounts in other financial institutions to ensure quick access to their funds when a financial institution experiences distress.

Managing Director and Chief Executive of the NDIC, Mr. Thompson Oludare Sunday, gave the advice during the Corporation’s Special Day at the 2025 Lagos International Trade Fair, themed “Connecting Business, Creating Value.”

The NDIC boss, who was represented by the Director of Claims Resolution, Mr. Kazeem Sule Olawale, said the move would help depositors access their funds more efficiently while reinforcing confidence in the safety of the banking system.

Sunday said the guidance forms part of NDIC’s broader strategy to strengthen depositor protection and reinforce public confidence in the financial system.

He added: “It is important to emphasise that the safety of bank deposits is a shared responsibility among banks, regulators, and indeed depositors. Depositors must ensure that their account information is up-to-date, including linking their Bank Verification Number (BVN) to all accounts. They must also protect their account details to prevent unauthorised access.

“To facilitate prompt reimbursement in the unlikely event of a bank failure, depositors are advised to maintain an alternate account in another bank with matching personal information and ensure that their BVN is linked to all such accounts.”

He also emphasised the importance of depositors taking greater responsibility for maintaining accurate records and protecting their account information. Banks, he said, are expected to resolve customer complaints within two weeks, after which unresolved cases may be escalated to the NDIC or the CBN.

“Depositors should also promptly report any suspected irregularities in their accounts to their banks. Banks are required to resolve such issues within two weeks. If unresolved or unsatisfactorily done, complaints should be escalated to the NDIC or the CBN through the appropriate channels,” he explained.

The NDIC chief highlighted recent improvements in deposit insurance coverage as a critical step in enhancing financial security. Depositors in Deposit Money Banks (DMBs), Non-Interest Banks (NIBs), and Mobile Money Operators (MMOs) are now insured up to N5 million per depositor, while those in Payment Service Banks (PSBs), Microfinance Banks (MFBs), and Primary Mortgage Banks (PMBs) are covered up to N2 million.

“We have made significant progress in enhancing depositor protection, particularly through increased deposit insurance coverage. Currently, the NDIC insures depositors of DMBs, MMOs, and NIBs up to N5,000,000 per depositor while for PSBs, MFBs and PMBs, the coverage is N2,000,000.

“With this expanded coverage, approximately 99 per cent of depositors are covered, demonstrating our unwavering commitment to deepening public confidence in the banking system.

“In the rare event of a bank failing, depositors, whose balances exceed the insured limit, will receive an initial payment up to the insured amount, with the remaining balance paid through liquidation dividends.

“These dividends are distributed from the proceeds of the failed bank’s assets on a pro-rata basis, ensuring fairness and transparency.” (This Day)