By Babajide Komolafe
The Nigeria Deposit Insurance Corporation, NDIC, has reaffirmed its strict compliance with fiscal and financial regulations, including 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 post-assumption engagement with key stakeholders following his appointment in July 2025.
Mr. Sunday said the Corporation places high premium on accountability and transparency, noting that NDIC 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.
According to him, this culture of compliance reflects NDIC’s role as a critical institution in Nigeria’s financial safety-net, charged with protecting depositors and sustaining confidence in the banking system. He emphasised that fiscal discipline remains central to the Corporation’s credibility and effectiveness.
The NDIC boss, however, noted that compliance with the Federal Government’s 50 per cent cost-to-income ratio policy poses operational constraints, as it limits the Corporation’s ability to build a robust Deposit Insurance Fund. He explained that international best practices, as outlined by the International Association of Deposit Insurers, IADI, require deposit insurers to maintain adequate funds to reimburse depositors in the event of bank failures without recourse to government support. Consequently, NDIC is seeking an exemption to strengthen its financial capacity.
Describing MOFI as a key stakeholder, Mr. Sunday noted that the Federal Government, through MOFI, holds a 40 per cent equity stake in NDIC, adding that sustained collaboration is essential to balancing government obligations with depositor protection.
In his remarks, Dr. Takang commended NDIC’s compliance with fiscal regulations and assured of MOFI’s continued engagement with the Ministry of Finance to support a strong and resilient deposit insurance system.
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