The Managing Director of the Nigeria Deposit Insurance Corporation (NDIC), Mr Thompson Oludare Sunday, has reaffirmed the Corporation’s strict compliance with fiscal and financial regulations, including the provisions of the Fiscal Responsibility Act (FRA) 2007, noting that NDIC has consistently remitted the required percentage of its earnings to the Federal Government.
Sunday disclosed this during a courtesy visit to the Managing Director of Ministry of Finance Incorporated (MOFI), Dr Armstrong Takang, as part of NDIC’s ongoing engagement with key stakeholders following his formal assumption of office in July 2025.
According to him, NDIC places high priority on financial accountability and transparency and fully complies with statutory remittance obligations, including the payment of 20 per cent of gross earnings or 80 per cent of net surplus to the Federal Government, as applicable. He added that the Corporation also submits its financial statements ahead of statutory deadlines.
The NDIC MD and Chief Executive explained that this culture of compliance aligns with the Corporation’s role as a key institution within Nigeria’s financial safety net, charged with protecting depositors and promoting confidence in the banking system. He emphasised that adherence to fiscal discipline remains central to NDIC’s credibility and effectiveness.
Mr Sunday further disclosed that NDIC also complies with the Federal Government’s 50 per cent cost to income ratio policy, although he noted that the policy poses operational constraints.
He explained that the deductions affect NDIC’s ability to build a strong Deposit Insurance Fund required to respond effectively to bank failures.
He stressed that international best practices under the Core Principles for Effective Deposit Insurance issued by the International Association of Deposit Insurers require deposit insurers to maintain adequate funds to reimburse depositors when banks fail without recourse to government. He added that NDIC is therefore seeking an exemption to strengthen its capacity in this regard.
Mr Sunday described MOFI as a critical stakeholder, noting that the Federal Government, through MOFI, holds a 40 per cent equity stake in NDIC. He said sustained collaboration with MOFI is essential to ensuring that NDIC continues to meet its obligations to government while effectively safeguarding depositors’ funds.
In his remarks, Dr Takang commended NDIC for its exemplary collaborative approach and acknowledged the Corporation’s compliance with fiscal regulations. He assured that MOFI would continue to engage the Federal Ministry of Finance on NDIC’s behalf, noting that a strong NDIC is vital to sustaining confidence in Nigeria’s financial system.
Both institutions reaffirmed their commitment to continued cooperation, transparency and accountability, with Mr Sunday reiterating that NDIC remains focused on balancing regulatory compliance with its core mandate of depositor protection and financial system stability.