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The Nigeria Deposit Insurance Corporation (NDIC) has reiterated its full compliance with fiscal and financial regulations, including the Fiscal Responsibility Act (FRA) 2007, while seeking an exemption from the Federal Government’s 50 per cent cost-to-income ratio policy to strengthen its financial reserves.
The Managing Director/Chief Executive of NDIC, Mr 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 his post-assumption engagements with key stakeholders following his appointment in July 2025.
Sunday said accountability and transparency remain central to the Corporation’s operations, noting that NDIC consistently meets its statutory remittance obligations to the Federal Government. These include the payment of 20 per cent of gross earnings or 80 per cent of net surplus, as applicable, alongside the timely submission of its financial statements ahead of statutory deadlines.
According to him, this track record underscores NDIC’s role as a critical financial safety-net institution responsible for protecting depositors and sustaining confidence in the banking system. He stressed that fiscal discipline is essential to the Corporation’s credibility and effectiveness.
However, the NDIC chief explained that compliance with the Federal Government’s 50 per cent cost-to-income ratio policy constrains the Corporation’s ability to build a robust Deposit Insurance Fund. He noted that international best practices, as outlined by the International Association of Deposit Insurers (IADI), require deposit insurers to maintain adequate reserves to reimburse depositors promptly in the event of bank failures without relying on government support.
To address this challenge, Sunday said NDIC is seeking an exemption from the policy to enhance its financial capacity and strengthen depositor protection.
He described MOFI as a key stakeholder, pointing out that the Federal Government, through MOFI, holds a 40 per cent equity stake in NDIC, adding that sustained collaboration is necessary to balance government fiscal objectives with the Corporation’s mandate to safeguard depositors.
In his response, Takang commended NDIC’s adherence to fiscal regulations and assured that MOFI would continue to engage with the Federal Ministry of Finance to support a strong, resilient, and effective deposit insurance system.
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