The Nigeria Deposit Insurance Corporation (NDIC) says deductions, particularly the federal government’s 50 percent cost-to-income ratio policy, are limiting its ability to build a robust deposit insurance fund, which is critical for responding to bank failures.
According to a statement by Hawwa’u Gambo, the NDIC spokesperson, on Tuesday, Thompson Sunday, the managing director (MD) of the corporation, spoke during a courtesy visit to Armstrong Takang, the managing director of the Ministry of Finance Incorporated (MOFI).
Sunday said NDIC takes financial accountability and transparency seriously, complying fully with statutory remittance obligations, including paying 20 percent of gross earnings or 80 percent of net surplus to the federal government.
The NDIC MD said the corporation also submits its financial statements ahead of statutory deadlines, in compliance with their role as a key institution within Nigeria’s financial safety-net, charged with protecting depositors and promoting confidence in the banking system.
He emphasised that adherence to fiscal discipline remains central to NDIC’s credibility and effectiveness.
Sunday said international best practices under the International Association of Deposit Insurers (IADI) require deposit insurers to maintain adequate funds to reimburse depositors when banks fail, without recourse to government support.
He said the NDIC is therefore seeking an exemption from the policy to strengthen its capacity in this regard.
Sunday described MOFI as a critical stakeholder, noting the federal government’s 40 percent equity stake in the NDIC, and stressed that sustained collaboration with MOFI is essential to the corporation’s obligations to both government and depositors.
Also speaking, Takang commended the NDIC for its strong collaborative spirit and acknowledged the corporation’s compliance with fiscal regulations.
The MOFI MD assured that MOFI would continue to engage the federal ministry of finance on behalf of the corporation, noting that a strong NDIC is vital to sustaining confidence in Nigeria’s financial system.
