- Courts MOFI as critical stakeholder
BY COBHAM NSA – The Nigeria Deposit Insurance Corporation (NDIC) will not compromise its strict compliance with fiscal and financial regulations, including the Fiscal Responsibility Act (FRA) 2007 provisions to protect depositors and promote confidence in the banking system
This is as the Corporation also confirmed consistency in remitting the required percentage of its earnings to the Federal Government’s purse
Managing Director and Chief Executive of the Nigeria Deposit Insurance Corporation (NDIC), Mr. Thompson Oludare Sunday made this declaration while visiting the Managing Director and Chief Executive of the Ministry of Finance Incorporated (MOFI), Dr. Armstrong Takang, in Abuja.
He said given its unwavering commitment to financial accountability and transparency, the Corporation remains at ease complying fully with statutory remittance obligations, including payment of 20 percent of gross earnings or 80 percent of net surplus to the Federal Government, as applicable.
Further disclosing that NDIC always submits its financial statements ahead of statutory deadlines, Mr Sunday explained that this culture of compliance aligns with the Corporation’s role as a key institution within Nigeria’s financial safety-net, charged with safeguarding depositors and fostering faith in the banking system
According to him, adherence to fiscal discipline remains central to NDIC’s credibility and effectiveness, adding that the Corporation also complies with the Federal Government’s 50 percent cost-to-income ratio policy, despite existing operational constraints in the policy implementation.
Mr Sunday explained that the deductions affect NDIC’s ability to build a strong Deposit Insurance Fund (DIF), which is needed to respond effectively to bank failures.
While noting 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, he said the NDIC is seeking an exemption to strengthen its capacity in this regard.
Mr. Sunday, who described MOFI as a critical stakeholder, noted that with the Federal Government, through MOFI, holding a 40 per cent equity stake in NDIC, sustained collaboration between both organizations remains essential to ensure the Corporation continues to meet its obligations to government while effectively ensuring the safety of customers’ funds.
Speaking during the visit, the MOFI Chief Executive, Dr. Takang, who praised NDIC for its exemplary collaborative spirit, also acknowledged the Corporation’s meticulous compliance with fiscal regulations.
He said MOFI would continue to engage the Federal Ministry of Finance on behalf of the Corporation, stressing that a strong NDIC is vital to sustaining confidence in Nigeria’s financial system.
Both institutions reiterated reasserted their resolve for sustained partnership, transparency and accountability, with Mr. Sunday assuring that NDIC remains focused on balancing regulatory compliance with its overriding mandate of depositor protection and financial system stability.
Meanwhile, a statement by Hawwau Gambo, Head, Communication and Public Affairs Department, NDIC, said the visit to MOFI is part of the Corporation’s ongoing engagement with key stakeholders following Mr Oludare’s official resumption of duties in July 2025.
