The Nigeria Deposit Insurance Corporation (NDIC) has reaffirmed its strict compliance with fiscal and financial regulations, including the provisions of the Fiscal Responsibility Act (FRA) 2007, stressing that it has consistently remitted the required portion of its earnings to the Federal Government.
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 the Corporation’s stakeholder engagement following his assumption of office in July 2025.
Sunday said the NDIC places a premium on financial accountability and transparency, noting that it 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 the Corporation also submits its financial statements ahead of statutory deadlines.
According to him, this culture of compliance is consistent with NDIC’s role as a key institution within Nigeria’s financial safety net, responsible for protecting depositors and promoting confidence in the banking system.
He emphasised that adherence to fiscal discipline remains central to the Corporation’s credibility and effectiveness.
The NDIC chief further disclosed that the Corporation also complies with the Federal Government’s 50 per cent cost-to-income ratio policy, but noted that the policy poses operational constraints.
He explained that the deductions limit NDIC’s capacity to build a robust Deposit Insurance Fund, which is critical for responding effectively to bank failures.
Sunday said 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 sufficient funds to reimburse depositors without recourse to government support.
He added that NDIC is therefore seeking an exemption from the policy to strengthen its financial capacity.
Describing MOFI as a critical stakeholder, Sunday noted 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 the Corporation continues to meet its obligations to government while effectively safeguarding depositors’ funds.
In his response, Takang commended the NDIC for its 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 Sunday reiterating NDIC’s focus on balancing regulatory compliance with its core mandate of depositor protection and financial system stability.