Corporation says it has consistently remitted statutory earnings to FG, flags cost-to-income rule as constraint
The Nigeria Deposit Insurance Corporation (NDIC) has reiterated its commitment to full compliance with fiscal and financial regulations, including the Fiscal Responsibility Act (FRA) 2007, stating that it has consistently remitted the required share of its earnings to the Federal Government.
The Managing Director and Chief Executive of NDIC, Thompson Oludare Sunday, made this known during a courtesy visit to the Managing Director and Chief Executive of the Ministry of Finance Incorporated (MOFI), Armstrong Takang, as part of post-assumption engagements with key stakeholders following his appointment in July 2025.
Mr. Sunday said accountability and transparency remain core values of the Corporation, noting that NDIC has met 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, where applicable. He added that the Corporation also submits its financial statements within stipulated timelines.
According to him, NDIC’s compliance record underscores its role as a critical component of Nigeria’s financial safety net, with responsibility for protecting depositors and sustaining confidence in the banking system.
He stressed that maintaining fiscal discipline is central to the Corporation’s credibility and effectiveness.
However, the NDIC chief raised concerns over the Federal Government’s 50 per cent cost-to-income ratio policy, describing it as a major operational challenge that constrains the Corporation’s ability to build a sufficiently strong Deposit Insurance Fund.
Sunday explained that global best practices, as set out by the International Association of Deposit Insurers (IADI), require deposit insurers to maintain adequate funds to promptly reimburse depositors in the event of bank failures, without relying on government intervention. To align with this standard, he said NDIC is seeking an exemption from the policy to strengthen its financial capacity.
Describing MOFI as a strategic stakeholder, Sunday noted that the Federal Government, through the agency, holds a 40 per cent equity stake in NDIC, stressing that continued collaboration is essential to balancing government fiscal objectives with the need to safeguard depositors.
In his response, Armstrong Takang commended NDIC for its adherence to fiscal regulations and assured the Corporation of MOFI’s continued engagement with the Ministry of Finance to support the development of a strong and resilient deposit insurance framework.
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