The difference now lies not in whether people save, but in how they save.  Reports from the National Bureau of Statistics (NBS) highlight this shift, showing inflation in Nigeria climbing from 22.41% in May 2023 to a peak of 34.80% by late 2024.

While temporary cooling occurred in early 2025, the overarching trend underscores a stark reality – cash that isn’t generating interest is rapidly losing its purchasing power.

For many Nigerians, the instinct to put money aside remains strong but without structure and strategy, those savings often fail to deliver real value and results.

Money kept idle may offer liquidity and accessibility, but may not preserve value effectively over time.  To achieve financial growth, saving must evolve from passive storage to intentional planning.

For generations, informal saving methods such as keeping cash at home or participating in contribution schemes like ajo or esusu have served as accessible financial tools. While these systems encourage discipline and community trust, they come with clear limitations in a modern economy.

Physical cash steadily loses value due to inflation, meaning what seems sufficient today may purchase far less in the near future. Easy access to such funds also increases the likelihood of impulsive spending, weakening long-term financial discipline.

More importantly, money kept outside formal financial systems does not grow. It earns no interest, gains no value, and misses the compounding effect that drives wealth accumulation.

Contribution schemes, while helpful for short-term goals, are often rigid and do not generate returns, they help rotate money, but not multiply it.

To build and maintain a meaningful financial backbone, savings must be aligned with purpose. An emergency fund, for instance, remains the foundation of financial stability, but leaving it in low-yield accounts limits its potential.

Placing such funds in flexible savings options that offer daily interest based on the terms and conditions allows individuals to manage access while still earning modest returns. For funds that are not immediately needed, fixed savings or deposits provide a stronger pathway to growth.

By committing money for a defined period in interest-bearing savings accounts, savers can benefit from interest rates that may assist in preserving value over time, subject to prevailing economic conditions, while also reducing the temptation to spend impulsively.

Many individuals report that setting clear savings goals and maintaining disciplined saving habits can improve confidence in managing personal finances.

Saving with clear goals further strengthens financial discipline. When individuals align their savings with specific needs such as rent, education, or business capital, and automate contributions, they remove the uncertainty and inconsistency that often derail financial plans. Over time, this approach builds both confidence and stability.

The difference between merely saving money and actually growing it becomes more evident over time. Funds placed in interest-bearing accounts benefit from compounding and gradually increase in value, while idle cash continues to lose purchasing power. What appears safe on the surface may, in reality, be diminishing.

The emergence of tech-enabled financial platforms like FairMoney has made structured saving more accessible, offering individuals secure and transparent ways to save and manage their funds.

FairMoney MFB operates under the oversight of the Central Bank of Nigeria (CBN) and is insured  by the Nigeria Deposit Insurance Corporation (NDIC), subject to applicable coverage limited and regulatory conditions, providing an added layer of confidence.

Ultimately, financial security is not determined solely by income, but by how effectively available resources are managed and grown. Intentional saving is about making money work with clarity, discipline, and purpose.

In an uncertain economic environment, that shift from simply keeping money to adopting a structured savings approach can form an important component of long-term financial planning.

In a significant move in the past days, the Nigeria Deposit Insurance Corporation (NDIC) announced it will distribute ₦24.3 billion as a second liquidation dividend to eligible depositors whose balances exceeded the statutory insured limit of ₦5 million at the time the bank’s licence was revoked.

The announcement follows the tumultuous revocation of Heritage Bank’s operating licence by the Central Bank of Nigeria (CBN) on June 3, 2024, a decision that triggered financial stress for many account holders and raised questions about how much of their funds could ever be recovered.

When the NDIC took over as liquidator, it moved swiftly to pay insured deposits of up to ₦5 million per depositor, tapping into its Deposit Insurance Fund to ensure immediate relief. But the bigger challenge lay in reimbursing customers with larger, uninsured balances.

To bridge that gap, the corporation embarked on a rigorous campaign to recover assets, selling physical properties, collecting outstanding debts, and realising investments tied to the failed bank.

The fruits of those efforts are now materialising. The newly declared ₦24.3 billion second liquidation dividend will be paid to eligible depositors at 5.2 kobo per ₦1 on their outstanding uninsured balances, pushing the cumulative payout so far to 14.4 kobo per ₦1.

For many former customers, this payment represents more than just a number, it’s a step toward closure.

Under the NDIC’s streamlined process, those who already received the first tranche and their insured sums will have the funds automatically credited to their bank accounts via their Bank Verification Numbers (BVN).

The corporation has also urged those without alternative accounts or BVNs, or those yet to claim previous payouts, to visit NDIC offices or use the online e-claim portal to ensure they are included in the next round of disbursements.

According to the NDIC, the Heritage Bank liquidation dividends, paid from proceeds of asset disposals, debt recovery, and investment realisations, are meant to ensure that depositors with uninsured balances are fairly compensated ahead of other creditors and shareholders.

But final settlement remains contingent on the continued recovery of the bank’s assets.

The latest payout, while not a full recovery for many, signals progress in one of Nigeria’s most closely watched bank resolutions, and offers reassurance that systems designed to protect depositors can still deliver results, even in complex liquidation scenarios.

At the 20th Abuja International Trade Fair, under the theme “Sustainability: Consumption, Incentives and Taxation,” Dr. Oludare Sunday, NDIC’s managing director/CEO, delivered the caution to Nigerians.

Represented by Olabimpe Akande, the director of its Performance Management Department, Dr. Sunday stressed that only banks and fintech firms licensed by the CBN and insured by NDIC should be entrusted with public funds.

He affirmed that NDIC insures deposits in Deposit Money Banks (DMBs), Non-Interest Banks, and Mobile Money Operators up to ₦5 million, while depositors in Payment Service Banks (PSBs), Microfinance Banks (MFBs), and Primary Mortgage Banks (PMBs) are covered up to ₦2 million.

Dr. Sunday also explained the process for recoveries when a bank fails: depositors receive up to the insured amount immediately, and any excess is paid later via liquidation dividends derived from the sale of the failed institution’s assets.

He cited the revocation of Heritage Bank’s license in June 2024 as a case in point: insured depositors were paid swiftly, with liquidation dividends distributed later as asset recovery proceeded.

In closing, NDIC reiterated its commitment to safeguarding public deposits and maintaining confidence in the banking system through rigorous oversight, coordination with CBN, and enforcement of licensing standards.

[Source: ThisDayLive]

Scheduled for October 7–9, 2025, across Lagos, Abuja, and Enugu with hybrid global participation, NFW25 will bring together more than 20,000 innovators, policymakers, creators, regulators, investors, and professionals to explore how fintech powers every industry, from healthcare and agriculture to entertainment, transport, media, and education.

“This year’s theme reflects fintech’s transformation from a niche financial solution to the conductor of Nigeria’s entire economic orchestra,” said Dr. Jameelah Sharrieff-Ayedun, Vice President of the Fintech Association of Nigeria (FinTechNGR). “From enabling micro-insurance for healthcare, powering transaction-based credit for smallholder farmers, to boosting the creator economy with seamless payouts, making transport and retail transactions traceable and safer, and more.”

“We’re reimagining the conference experience to offer a more unique, participant-led journey. That is why the conference will have multiple simultaneous tracks. Each track is tailored to different ecosystem actors – policymakers, innovators, corporates, creators, SMEs, and youth. Our digital future works only when every instrument in the orchestra plays in harmony.”

What to Expect at NFW25

• 20+ Thematic Tracks designed for 20,000+ ecosystem actors, including policymakers, innovators, creators, SMEs, and youth
• Global Networking & Investment Opportunities with high-level regulators (CBN, SEC, NDIC, NITDA, NIMC, and more)
• Innovation Showcases & Live Demos from leading fintechs and disruptors
• Youth & SME Capacity-Building Workshops to prepare the next generation of industry leaders
• Special Highlights, including the Most Interesting Fintech of the Year reveal and industry performances

“Fintech powers everything, and NFW25 is where Nigeria’s future is co-created, so we are inviting everyone, from innovators to end-users, to be part of this symphony,” added Mr. Seun Folorunsho, executive secretary of the Planning Committee. 

Key Details

Dates: October 7–9, 2025
 Venues:

• Lagos: Landmark Centre (Main Event)
  
  
• Abuja: Royal Choice Hotel, CBD
  
  
• Enugu: Hotel Sunshine, Plot C5, Presidential Road, Ogui
    + Hybrid Global Access

Registration for NFW25 is 100% free but highly competitive, with priority access given to early registrants due to expected demand across specialized tracks. Click here to register.

According to a press statement signed by Hawwau Gambo, head of Communications and Public Affairs Department, Mr. Thompson Oludare Sunday was officially inaugurated as the managing director/chief executive officer, alongside Dr. Kabir Sabo Katata, who assumes the role of executive director (Operations).

The inauguration took place at the Ministry of Finance, Abuja.

In his remarks, Edun urged the new management team to bring their diverse experience to bear in ensuring economic stability, while reaffirming the ministry’s full support in helping them achieve their mandate.

“As a component of the financial safety-net has a crucial role to play in the nation’s march to economic stability and prosperity,”  he stated.

In response, Sunday assured the Minister of the management’s commitment to delivering on its responsibilities and expressed gratitude to President Bola Tinubu for the appointment.

He emphasised that the management’s approach would be guided by public policy objectives and pledged to drive seamless collaboration with the Corporation’s staff.

Thompson Oludare Sunday is a seasoned financial expert with over 30 years of regulatory and supervisory experience. His expertise spans corporate governance, risk management and compliance, key pillars for ensuring institutional safety and soundness.

Dr Kabir Sabo Katata, the new executive director (Operations), is a quantitative energy strategist and computational finance expert with extensive experience in power trading and risk management.

He joined the NDIC in 2012 as an Assistant Director in the Research, Policy, and International Relations Department and rose to the position of Director in January 2022 before his current appointment.

This was disclosed in a statement signed by Hawwau Gambo, NDIC’s acting head of Communication and Public Affairs.

The corporation has initiated the first disbursement of liquidation dividends, totalling N46.6 billion, sourced from the sale of the defunct bank’s assets and the recovery of outstanding debts.

In June 2024, the Nigerian federal government revoked Heritage Bank Plc’s banking license due to its failure to improve financial performance, which posed a risk to the country’s financial stability.

As part of its commitment to fully reimburse depositors of the failed bank, NDIC began the disbursement process on Friday, April 25, 2025.

The dividend payment is being made at the rate of 9.2 kobo per naira on a pro-rata basis to those depositors whose balances exceeded the N5 million insured limit.

The statement further clarified that NDIC is utilizing depositors’ Bank Verification Numbers (BVNs) to identify their alternate bank accounts for reimbursement.

It read:

“It will be recalled that following the revocation of Heritage Bank’s operating license by the Central Bank of Nigeria (CBN) on June 3, 2024, the NDIC promptly began reimbursing insured deposits of up to N5 million per depositor. To ensure a seamless and efficient payment process, the NDIC used the Bank Verification Number (BVN) to locate alternate account numbers for depositors in other banks, automatically crediting them with the insured amount.”

Additionally, the NDIC has urged depositors with balances exceeding N5 million who have not yet received their payment to visit the nearest NDIC office.

Depositors without an alternate bank account should also visit the nearest NDIC office or complete and submit the deposit verification form on the NDIC website to facilitate the payment of the insured amount.

This, the company said, is to ensure smooth transactions and prompt repayment in the event of bank closure.

This was stated by Bello Hassan, the managing director and chief executive of the NDIC, at the 2024 NDIC Editors Forum at the weekend.

Hassan who was represented by Mustapha Muhammed, the executive director, Corporate Services, stressed the importance of updated KYC in the Nigerian financial system.

Noting that some customers of the defunct Heritage Bank are yet to get their insured deposits, Hassan said this was mainly due to lack of KYC and mismatch of names.

Adding that the NDIC was working to ensure that the insured deposits are paid, he said the corporation is not “unaware of the case of some depositors who are yet to access their guaranteed sums.

“This development is a result of reasons ranging from reconciling inconsistencies in the defunct bank’s depositor’s database to the absence of Bank Verification Numbers (BVN), placement of restrictions on some accounts and in some cases name mismatch.

“The Corporation is therefore working assiduously to resolve these challenges to ensure that depositors are promptly paid. I would like to seize this opportunity to emphasise the importance for depositors to ensure strict compliance with all Know Your Customer (KYC) regulations as prescribed by the CBN.

This will not only promote hitch-free transactions with their banks, but it will also go a long way in ensuring prompt reimbursement in the event of bank closure.

Hassan while pointing out that uninsured deposits represent a significant portion of the total deposits in Heritage Bank, furthered that the NDIC is working to ensure that depositors with amounts over the maximum insured amount of N5 million are paid through liquidation dividends from the realisation of the defunct bank’s assets and recovery of debts.

He furthered that the Corporation has already initiated the process of debt recovery and realisation of investments and physical assets of the defunct bank to ensure timely payment to the uninsured deposits of the defunct bank.

Beyond repaying depositors, he said the NDIC’s responsibilities extend to the creditors of the defunct bank, who according to him will receive payments after all depositors have been fully reimbursed.

“This orderly process, based on asset realisation and priority of claims, is essential in maintaining public trust in the banking system and promoting financial system stability.

As one of the financial safety nets, the NDIC boss reassured depositors of the safety of their funds, which he said is critical to “instilling trust in the banking system and preventing bank runs at times of uncertainty. Over the years, the NDIC has been instrumental in promoting stability by ensuring that when banks fail, depositors are protected, and their funds are reimbursed promptly.

“The NDIC was established over three and half decades ago to protect depositors, especially the uninformed, and contribute to the financial system’s stability. Our core mandate includes; providing deposit insurance cover to depositors of licensed banks, supervising insured financial institutions, Distress resolution and ensuring orderly resolution in the event of bank failure. Thus, the role of the deposit insurer cannot be overemphasised.”

[Featured Image Credit]

The South African pay-TV operator disclosed this loss in its financial results for the six months ending September 30, 2024.

The initial deposit, which stood at N33.7 billion as of March 31, 2024, had already been reduced to N31.6 billion prior to the bank’s closure, due to cash remittances. 

Heritage Bank’s banking licence was revoked by the Central Bank of Nigeria (CBN) on June 3, 2024, and the Nigeria Deposit Insurance Corporation (NDIC) was appointed as the liquidator.

In its statement, MultiChoice explained that the deposit was written off as part of its operating expenses for the period under review. “Following the revocation of Heritage Bank’s banking licence and its subsequent liquidation, the group has written off its receivable relating to the cash held with the bank,” the company noted.

The financial setback is compounded by the continuing depreciation of the naira, which has led to additional foreign exchange losses for the company. 

MultiChoice also reported a reduction in funds repatriated from Nigeria, with $65 million extracted in the first half of FY24, down from $91 million in the previous year.

At the end of September 2024, MultiChoice held $11 million in cash in Nigeria, a significant drop from the $39 million reported at the close of FY24. 

Not giving in to these challenges, the company has focused on remitting cash from Nigeria, although the process has been hindered by the weaker naira and the substantial write-off related to Heritage Bank.

Although the amount MultiChoice is seeking to recover exceeds the maximum insured deposit of N5 million per depositor, the NDIC has stated it is working to ensure that all depositors, including those with balances above the insured limit, are reimbursed through dividends from the liquidation of the bank’s assets.

These financial challenges have added to MultiChoice’s issues in Nigeria, where it has faced an 18% drop in active DStv subscribers and a decrease in overall revenue. 

Speaking during the 21st Edition of the NDIC Workshop for Business Editors and the Finance Correspondents Association of Nigeria (FICAN), he said:

“I am particularly delighted to be among this esteemed group of professionals who have consistently shown an unwavering commitment to educating the public on financial matters, especially the critical role of the Nigeria Deposit Insurance Corporation (NDIC) in ensuring the stability of our financial system.

“The theme of this year’s workshop: “Strengthening Nigeria’s Financial Safety-Net – The Role of Deposit Insurance,” is timely and highly relevant, especially in the light of the ever-evolving dynamics of the global financial system and its implications for Nigeria.

“As our financial system continues to evolve and face new challenges, the NDIC remains steadfast in its mission to protect depositors and collaborate with the Central Bank of Nigeria (CBN) in ensuring the stability of the banking sector, which is critical to the growth and development of the economy.

“Over the next two days, we will engage in deep discussions on key aspects of Nigeria’s deposit insurance system, its evolution, innovations and future prospects. This workshop is designed to enrich your understanding of the NDIC’s role in maintaining financial stability and protecting depositors, with presentations covering key issues that shape the Corporation’s activities and consumer protection.

“As you maybe aware, the NDIC was established over three decades ago to protect depositors, especially the most vulnerable, and to contribute to the stability of the financial system. Our core mandate includes providing deposit insurance cover to depositors of licensed banks, supervising insured financial institutions, resolving distressed banks, and ensuring orderly resolution in the event of bank failure.”

This was contained in a statement signed by Bashir Nuhu, director, Communication & Public Affairs of the corporation, on Sunday.

The payment, Techeconomy gathered, was achieved using Bank Verification Numbers (BVN) as a unique identifier to locate depositors’ alternate ac­counts in other banks.

However, depositors with balances exceeding 5 million naira have been paid the initial insured sum of 5 million naira, while the remaining balances (classified as uninsured deposits) will be paid as liquidation dividends upon realisation of the defunct bank’s assets and recovery of debts owed to the defunct bank.

“This unprecedented achieve­ment of direct payment through BVN-linked alternate accounts without the need for depositors to visit NDIC offices or fill out forms marks a historic shift for the NDIC in the prompt reim­bursement of depositors with payment of about 82.36 percent of the total insured deposit to date”, the statement added.

Following the revocation of Heritage Bank’s banking license by the Central Bank of Nigeria (CBN) on June 3, 2024, the Nigeria Deposit Insurance Corporation (NDIC) was appointed as liquida­tor and the corporation, following Section 12(2) of BOFIA 2020 and Section 55 subsections 1 & 2 of the NDIC Act 2023, immediately commenced the process of veri­fication and payment to insured depositors.

The corporation added that the next stage is the payment of insured deposits.

“It is instructive to state that, the remaining 17.64 percent of the insured deposits yet to be paid were largely depositors whose ac­counts have post no debits (PND) instructions or have no BVN.

“Others are those with no al­ternative accounts in other banks or accounts with KYC limit on the maximum lodgement per day and are yet to come forward for veri­fication.

“This category of depositors are presently being contacted by the corporation through tele­phone calls and text messages to come forward for verification”, it added.

The statement added, “Not­withstanding the significant progress recorded in the payment of the insured deposits, we are, however, not unmindful of the uninsured deposits, which constitute the larger portion of the total deposits of the defunct bank.