The Nigeria Deposit Insurance Corporation (NDIC) has reiterated its strict compliance with fiscal and financial regulations, highlighting transparency and accountability as central to its mandate of safeguarding depositors and maintaining confidence in Nigeria’s banking system. This was disclosed by NDIC Managing Director/Chief Executive, Thompson Oludare Sunday, during a courtesy visit to the Managing Director/Chief Executive of the Ministry of Finance Incorporated (MOFI), Dr. Armstrong Takang, as part of post-appointment stakeholder engagements.
Sunday emphasised that NDIC consistently adheres to the Fiscal Responsibility Act (FRA) 2007, including statutory remittances to the Federal Government. The Corporation routinely remits either 20% of its gross earnings or 80% of its net surplus, as applicable, while ensuring audited financial statements are submitted ahead of statutory deadlines. He noted that such fiscal discipline underscores NDIC’s role as a pillar of Nigeria’s financial safety-net.
The NDIC chief also highlighted operational challenges posed by the Federal Government’s 50% cost-to-income ratio policy, which limits the Corporation’s capacity to build a robust Deposit Insurance Fund essential for timely reimbursement of depositors in case of bank failures. He stressed that global best practices, as outlined by the International Association of Deposit Insurers (IADI), require deposit insurers to maintain sufficient funds without depending on government support.
Sunday disclosed that NDIC is seeking an exemption from the cost-to-income ratio policy to strengthen its financial capacity. He described MOFI as a strategic stakeholder, noting that the Federal Government holds a 40% equity stake in NDIC, and underlined the importance of ongoing collaboration to balance government obligations with NDIC’s core mandate of protecting depositors.
