January 04, (THEWILL) — The Managing Director/Chief Executive 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 the NDIC has consistently remitted the required percentage of its earnings to the Federal Government.
According to a statement signed by Hawwau Gambo, Head, Communication & Public Affairs Department, Mr. Sunday made this known during a courtesy visit to the Managing Director/Chief Executive of the 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 takes financial accountability and transparency seriously, stressing that the Corporation complies fully 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 NDIC also submits its financial statements ahead of statutory deadlines.
The NDIC MD/CE 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 emphasized 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, which is needed 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 (IADI) require deposit insurers to maintain adequate funds to reimburse depositors when banks fail without recourse to government, adding that the NDIC is 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 the government while effectively safeguarding depositors’ funds.
In his remarks, Dr. Takang commended the NDIC for its exemplary collaborative spirit 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 overriding mandate of depositor protection and financial system stability.
In another development, NDIC and the Nigeria Inter-Bank Settlement System (NIBSS) Plc had disclosed their readiness to formalise a partnership through a Memorandum of Understanding (MoU) aimed at ensuring faster and more efficient reimbursement of depositors in the event of bank failures.
The development was disclosed by Mr Sunday, during a courtesy visit to the Corporation’s Abuja headquarters by the NIBSS Executive Management team led by its MD/CEO, Mr. Premier Oiwoh.
Sunday commended NIBSS for its long-standing support, particularly its role in driving digital verification processes via the Bank Verification Number (BVN) platform, which facilitated seamless payment to alternate accounts of depositors of the failed Heritage Bank Limited. He described NIBSS as a “reliable partner” and said the MoU would solidify collaboration on depositor protection.
Key areas of the MoU include real-time synchronization of NDIC’s deposit registers and electronic records for swift account verification during bank resolution, expansion of disbursement channels to include Mobile Money Operators and a potential NDIC-branded mobile interface, and investment in Single Customer View (SCV) and interoperability infrastructure for instant validation.
Sunday praised NIBSS for reforming Nigeria’s payments system, mitigating financial fraud, and positioning it ahead of peers globally.
In response, Mr. Oiwoh reaffirmed NIBSS’s commitment to supporting NDIC’s mandate, emphasizing that prompt depositor reimbursement enhances public trust and financial inclusion. He noted that NIBSS is working closely with law enforcement to safeguard the nation’s payment infrastructure while lowering transaction costs and reinforcing the stability of the financial system.
The partnership is expected to strengthen NDIC’s capacity to protect depositors, enhance operational efficiency during bank resolutions, and boost confidence in Nigeria’s banking and digital payments ecosystem.
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
