By Musa Ibrahim
At a time when public institutions face growing scrutiny over accountability and fiscal discipline, the Nigeria Deposit Insurance Corporation (NDIC) is making a case for both strict compliance and strategic flexibility.
The NDIC has reaffirmed its adherence to Nigeria’s fiscal and financial regulations, including the Fiscal Responsibility Act of 2007, while also seeking targeted exemptions it says are necessary to strengthen its core mandate of protecting depositors and stabilising the banking system.
This position was articulated by Mr. Thompson Oludare Sunday, Managing Director and Chief Executive (MD/CE) of NDIC, during a courtesy visit to the MD/CE of Ministry of Finance Incorporated (MOFI), Dr. Armstrong Takang. The meeting formed part of NDIC’s post-assumption engagements with key stakeholders following Mr. Sunday’s appointment in July 2025.
According to Mr. Sunday, NDIC has consistently met its statutory obligations to the federal government, including remitting either 20 percent of its gross earnings or 80 percent of its net surplus, as required by law. He added that the Corporation routinely submits its financial statements ahead of statutory deadlines, underscoring what he described as a strong internal culture of accountability and transparency.
That culture, he said, is not incidental. As a cornerstone of Nigeria’s financial safety net, NDIC is responsible for insuring deposits and maintaining confidence in the banking system, particularly in times of stress. Fiscal discipline, Mr. Sunday argued, is central to the credibility of that role.
Yet the NDIC chief also drew attention to a structural challenge. He explained that the federal government’s policy limiting agencies to a 50% cost-to-income ratio constrains the corporation’s ability to build up its Deposit Insurance Fund. Such reserves, he noted, are critical if NDIC is to meet depositor claims promptly in the event of bank failures.
International standards, as set out by the International Association of Deposit Insurers (IADI), emphasise that deposit insurers should maintain sufficient funds to reimburse depositors without relying on government support. In this context, NDIC is seeking an exemption from the cost-to-income cap to allow it strengthen its financial buffers and align more closely with global best practices.
Mr. Sunday also highlighted the ownership structure of the corporation, noting that the federal government, through MOFI, holds a 40% equity stake in NDIC. This, he said, makes sustained collaboration essential, particularly in balancing government fiscal expectations with the imperative of depositor protection.
In his response, Dr. Takang commended NDIC for its record of compliance and assured the corporation of MOFI’s continued engagement with the Ministry of Finance. He said such cooperation would be key to supporting a strong and resilient deposit insurance system capable of underpinning confidence in Nigeria’s financial sector.
The exchange reflects a broader policy tension facing regulators, how to maintain fiscal discipline while ensuring that institutions charged with managing financial risk are adequately resourced. For NDIC, the argument is that compliance builds trust, but resilience requires room to build buffers before the next crisis tests the system.
