NDIC Seeks Stakeholder Input to Improve Deposit Insurance Standards

The Nigeria Deposit Insurance Corporation (NDIC) has issued a call for public and stakeholder feedback on its revised insurance standards, as part of ongoing efforts to strengthen the country’s financial safety net and enhance trust in the banking system.

In a statement released this week, the NDIC said it is reviewing its existing guidelines and policies governing deposit insurance in order to align them with international best practices. The corporation emphasized that input from banks, financial experts, regulators, and the general public is essential to ensure the updated standards are practical, inclusive, and responsive to the current realities of Nigeria’s financial sector.

The move comes amid a broader push to reinforce consumer protection and bolster confidence in the banking industry, especially as the country continues to navigate economic instability and currency fluctuations. The NDIC said the feedback process is aimed at identifying gaps in coverage, improving claims resolution processes, and increasing public awareness of the insurance framework that protects bank depositors.

NDIC Managing Director Bello Hassan highlighted the importance of transparency and collaboration in policy development. “Engaging stakeholders will help us craft standards that not only safeguard depositors’ funds but also enhance the overall resilience of the financial system,” he said.

The review will focus on several key areas, including the adequacy of current coverage limits, response times for insured deposit claims, and procedures for dealing with failing or failed financial institutions. Small depositors and rural banking customers are also a priority, with the NDIC aiming to ensure that no group is left vulnerable in the event of bank distress.

Industry analysts have welcomed the NDIC’s move, noting that the financial sector has evolved significantly over the last decade, particularly with the rise of digital banking and fintech platforms. They argue that updated insurance policies must reflect the new risks and opportunities presented by technological innovation in financial services.

The NDIC has opened multiple channels for receiving feedback, including its official website, email submissions, and a series of consultative forums scheduled to be held in major cities across the country. Submissions will be accepted over the next 30 days, after which the feedback will be reviewed and incorporated into the final draft of the revised standards.

Once finalized, the new insurance framework is expected to be rolled out later this year, with the NDIC promising more accessible communication and education campaigns to help Nigerians understand their rights and protections as bank depositors.

The call for feedback marks a proactive step by the NDIC to engage with the evolving financial landscape and foster a more secure, transparent, and inclusive banking environment for all Nigerians.