The Nigeria Deposit Insurance Corporation (NDIC) has firmly restated its commitment to operating within the bounds of fiscal and financial regulations. The corporation's leadership emphasized that transparency and accountability are non-negotiable pillars in its mission to protect depositors and ensure the stability of the nation's banking sector.
Strategic Engagement with Key Stakeholder MOFI
This reaffirmation was made by the Managing Director and Chief Executive of NDIC, Thompson Oludare Sunday, during a significant courtesy visit to the headquarters of the Ministry of Finance Incorporated (MOFI). The meeting, which took place in Abuja, involved Sunday and his counterpart at MOFI, Dr. Armstrong Takang.
The visit, part of Sunday's broader stakeholder engagement initiative following his appointment in July 2025, served as a platform to strengthen collaboration. In a symbolic gesture, Sunday presented NDIC publications to Dr. Takang, underscoring the spirit of goodwill between the two federal entities.
A Record of Fiscal Discipline and Compliance
During the discussions, Sunday detailed the corporation's impeccable record of compliance. He stated that the NDIC has consistently adhered to the Fiscal Responsibility Act (FRA) of 2007.
The corporation regularly remits either 20% of its gross earnings or 80% of its net surplus to the Federal Government, whichever is applicable. Furthermore, NDIC prides itself on submitting its audited financial statements ahead of statutory deadlines, setting a standard for transparency.
"Compliance with fiscal regulations is not optional for NDIC; it is fundamental to our credibility and effectiveness as a deposit insurer," Sunday asserted. He explained that this culture of fiscal discipline is intrinsic to NDIC's role as a cornerstone of Nigeria's financial safety-net, crucial for maintaining public trust.
Operational Hurdles and the Call for Policy Review
However, the NDIC boss highlighted a major operational constraint. He pointed to the Federal Government's 50% cost-to-income ratio policy as a significant challenge. According to Sunday, the mandatory deductions under this policy limit the corporation's ability to accumulate a sufficiently robust Deposit Insurance Fund (DIF).
A strong DIF is vital for the NDIC to fulfill its core mandate: the timely reimbursement of depositors in the unfortunate event of a bank failure. Sunday referenced global standards set by the International Association of Deposit Insurers (IADI), which advocate for deposit insurers to maintain adequate funds to resolve bank failures without needing government bailouts.
To align with these international best practices and bolster its financial capacity, the NDIC is formally seeking an exemption from the cost-to-income ratio policy. This move is seen as essential for enhancing the corporation's readiness to protect depositors' funds under any circumstance.
Sunday described MOFI as a strategic stakeholder, noting that the Federal Government, through MOFI, holds a 40% equity stake in NDIC. He stressed that continued dialogue and cooperation with MOFI are imperative to balance the government's fiscal objectives with NDIC's overriding duty of depositor protection.
