The Nigeria Deposit Insurance Corporation (NDIC) has reaffirmed its strict compliance with fiscal and financial regulations as part of efforts to strengthen depositor protection and sustain confidence in Nigeria’s banking system.
The Managing Director/Chief Executive of the Corporation, Thompson Oludare Sunday, stated this during a courtesy visit to the Managing Director/Chief Executive of the Ministry of Finance Incorporated (MOFI), Dr. Armstrong Takang, as part of NDIC’s stakeholder engagement following his assumption of office in July 2025.
Sunday said the NDIC consistently complies with the provisions of the Fiscal Responsibility Act (FRA) 2007, including statutory remittances to the Federal Government.
He explained that the Corporation pays either 20 per cent of its gross earnings or 80 per cent of its net surplus, as applicable, and submits its financial statements ahead of statutory deadlines.
According to him, financial accountability and transparency remain central to the NDIC’s operations, in line with its role as a key institution in Nigeria’s financial safety-net architecture.
He stressed that adherence to fiscal discipline underpins the Corporation’s credibility and effectiveness in safeguarding depositors’ funds and promoting stability in the banking sector.
The NDIC boss also disclosed that the Corporation complies with the Federal Government’s 50 per cent cost-to-income ratio policy, noting, however, that the policy poses operational constraints.
He explained that the deductions limit the NDIC’s ability to build a robust Deposit Insurance Fund, which is critical for timely reimbursement of depositors in the event of bank failures.
The NDIC boss noted that international best practices, as outlined in the Core Principles for Effective Deposit Insurance issued by the International Association of Deposit Insurers (IADI), require deposit insurers to maintain adequate funds to meet obligations without recourse to government support.
He said the NDIC is therefore seeking an exemption from the policy to strengthen its capacity in this regard. Describing MOFI as a strategic stakeholder, Sunday recalled that the Federal Government, through MOFI, holds a 40 per cent equity stake in the NDIC.
He emphasised that sustained collaboration with the agency is essential to balancing the Corporation’s obligations to government with its mandate of depositor protection.
In his response, Dr. Takang commended the NDIC for its collaborative approach and acknowledged its compliance with fiscal regulations.
He assured that MOFI would continue to engage the Federal Ministry of Finance on the Corporation’s behalf, noting that a strong NDIC is critical to maintaining confidence in Nigeria’s financial system.
Both organisations reaffirmed their commitment to continued cooperation, transparency and accountability, with the NDIC restating its focus on aligning regulatory compliance with its core mandate of financial system stability and depositor protection.
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