The Nigeria Deposit Insurance Corporation (NDIC) has reaffirmed its strict adherence to fiscal and financial regulations, stressing that transparency and accountability remain central to its mandate of protecting depositors and safeguarding Nigeria’s banking system.

The Managing Director/Chief Executive of NDIC, Thompson Oludare 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 his stakeholder engagements following his appointment in July 2025.

Sunday said the Corporation has consistently complied with the provisions of the Fiscal Responsibility Act (FRA) 2007, including statutory remittances to the Federal Government.

According to him, NDIC regularly remits either 20 per cent of its gross earnings or 80 per cent of its net surplus, as applicable, while also submitting its audited financial statements ahead of statutory deadlines.

He emphasised that NDIC’s culture of fiscal discipline reflects its role as a key pillar of Nigeria’s financial safety-net, charged with maintaining public confidence in the banking system.

“Compliance with fiscal regulations is not optional for NDIC; it is fundamental to our credibility and effectiveness as a deposit insurer,” Sunday said.
The NDIC boss, however, noted that the Federal Government’s 50 per cent cost-to-income ratio policy poses operational challenges for the Corporation.

He explained that the deductions limit NDIC’s ability to build a robust Deposit Insurance Fund, which is critical for timely reimbursement of depositors in the event of bank failures.

Sunday pointed out that global 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 resolve bank failures without recourse to government funding.

He revealed that NDIC is therefore seeking an exemption from the policy to strengthen its financial capacity. Describing MOFI as a strategic stakeholder, Sunday noted that the Federal Government, through MOFI, holds a 40 per cent equity stake in NDIC. He stressed that sustained collaboration with MOFI is essential for balancing government obligations with NDIC’s core mandate of depositor protection.