NIyi Jacobs
The Managing Director/Chief Executive of the Nigeria Deposit Insurance Corporation (NDIC), Mr. Thompson Oludare Sunday, has reaffirmed the Corporation’s strict adherence to fiscal and financial regulations, including the provisions of the Fiscal Responsibility Act (FRA) 2007. He noted that the NDIC has consistently remitted the statutory percentage of its earnings to the Federal Government in line with the law.
Mr. Sunday made this disclosure during a courtesy visit to the Managing Director/Chief Executive of the Ministry of Finance Incorporated (MOFI), Dr. Armstrong Takang. The visit forms part of NDIC’s ongoing engagement with key stakeholders following Mr. Sunday’s formal assumption of office in July 2025.
According to him, financial accountability and transparency remain core values at the NDIC. He stressed that the Corporation fully complies with all 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 also disclosed that NDIC submits its financial statements ahead of statutory deadlines.
The NDIC Managing Director/Chief Executive explained that this strong culture of compliance aligns with the Corporation’s mandate as a critical institution within Nigeria’s financial safety net, responsible for protecting depositors and sustaining confidence in the banking system. He emphasized that fiscal discipline is central to NDIC’s credibility and operational effectiveness.
Mr. Sunday further revealed that the Corporation complies with the Federal Government’s 50 per cent cost-to-income ratio policy, although he noted that the policy presents operational challenges. He explained that such deductions constrain NDIC’s ability to adequately build the Deposit Insurance Fund, which is essential for responding effectively to bank failures.
He added 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 sufficient funds to reimburse depositors promptly in the event of bank failures, without reliance on government support. In this regard, he stated that the NDIC is seeking an exemption from the policy to strengthen its financial capacity.
Describing MOFI as a critical stakeholder, Mr. Sunday noted that the Federal Government, through MOFI, holds a 40 per cent equity stake in the NDIC. He stressed that sustained collaboration with MOFI is vital to ensuring that the Corporation continues to meet its obligations to government while effectively safeguarding depositors’ funds.
