The Nigeria Deposit Insurance Corporation (NDIC) has reiterated its strict adherence to fiscal and financial regulations, including the Fiscal Responsibility Act (FRA) 2007, affirming that it consistently remits the mandated portion of its earnings to the Federal Government.
Managing Director and Chief Executive of NDIC, Mr. Thompson Oludare Sunday, made the remarks during a courtesy visit to the Managing Director/Chief Executive of the Ministry of Finance Incorporated (MOFI), Dr. Armstrong Takang. The visit formed part of NDIC’s ongoing engagement with key stakeholders following Mr. Sunday’s appointment in July 2025.
Mr. Sunday emphasised that the Corporation places high value on accountability and transparency. He noted that NDIC complies fully with statutory remittance requirements, including the payment of 20 per cent of gross earnings or 80 per cent of net surplus to the Federal Government, as applicable. Additionally, the Corporation submits its financial statements ahead of regulatory deadlines.
“This culture of compliance underscores NDIC’s pivotal role in Nigeria’s financial safety net, mandated to protect depositors and maintain confidence in the banking system,” he said, stressing that fiscal discipline is central to the Corporation’s credibility and operational effectiveness.
However, Mr. Sunday highlighted operational challenges posed by adherence to the Federal Government’s 50 per cent cost-to-income ratio policy, which restricts NDIC’s ability to build a robust Deposit Insurance Fund. He explained that international best practices, as outlined by the International Association of Deposit Insurers (IADI), require deposit insurers to maintain adequate funds to reimburse depositors in the event of bank failures without recourse to government bailouts.
Consequently, NDIC is seeking an exemption from the policy to strengthen its financial capacity and ensure depositor protection.
Describing MOFI as a crucial stakeholder, Mr. Sunday noted that the Federal Government, through MOFI, holds a 40 per cent equity stake in NDIC. He emphasised that sustained collaboration between the two entities is vital to balancing government fiscal obligations with the Corporation’s mandate to protect depositors.
In response, Dr. Takang praised NDIC’s consistency in fiscal compliance and assured that MOFI will continue to engage closely with the Ministry of Finance to support a strong and resilient deposit insurance system in Nigeria.
