‎NDIC Reaffirms Compliance With Fiscal Regulations, Seeks Stronger Depositor Protection

‎‎The Nigeria Deposit Insurance Corporation, NDIC, has reaffirmed its strict compliance with fiscal and financial regulations, including the Fiscal Responsibility Act, FRA, 2007, as part of efforts to strengthen depositor protection and financial system stability.

‎‎The Managing Director/Chief Executive of NDIC, Mr. Thompson Oludare Sunday, made this known during a courtesy visit to the Managing Director/Chief Executive of the Ministry of Finance Incorporated, MOFI, Dr. Armstrong Takang, following his assumption of office in July 2025.

‎Mr. Sunday said the Corporation consistently remits the statutory portion of its earnings to the Federal Government, in line with legal requirements, noting that NDIC complies with the payment of either 20 per cent of gross earnings or 80 per cent of net surplus, as applicable. He added that the Corporation also submits its financial statements ahead of statutory deadlines.

‎‎He explained that NDIC’s strong culture of accountability and transparency aligns with its role as a core institution within Nigeria’s financial safety net, responsible for protecting depositors and sustaining confidence in the banking system.

‎‎The NDIC boss also disclosed that the Corporation complies with the Federal Government’s 50 per cent cost-to-income ratio policy, but noted that the policy places operational constraints on NDIC’s ability to build a robust Deposit Insurance Fund needed to respond effectively to bank failures.

‎According to him, international best practices under the Core Principles for Effective Deposit Insurance issued by the International Association of Deposit Insurers require deposit insurers to maintain sufficient funds to reimburse depositors without recourse to government, adding that NDIC is therefore seeking an exemption to strengthen its capacity.

‎‎Mr. Sunday described MOFI as a key stakeholder, noting that the Federal Government, through MOFI, holds a 40 per cent equity stake in NDIC, and stressed that sustained collaboration is critical to meeting government obligations while safeguarding depositors’ funds.

‎In his remarks, Dr. Takang commended NDIC for its compliance with fiscal regulations and its collaborative approach, assuring that MOFI would continue to engage the Federal Ministry of Finance to support the Corporation, noting that a strong NDIC is vital to maintaining confidence in Nigeria’s financial system.

‎‎Both institutions reaffirmed their commitment to continued cooperation, transparency and accountability, with NDIC reiterating its focus on balancing regulatory compliance with its mandate of depositor protection and financial stability.

‎PR/Umbwanko Baba