NDIC affirms full compliance with FRA, statutory remittances

The Nigeria Deposit Insurance Corporation (NDIC) has declared that it has consistently complied with all fiscal and financial regulations over the years, including the provisions of the Fiscal Responsibility Act 2007, by remitting the required proportion of its earnings to the Federal Government and meeting all statutory reporting timelines.

The Managing Director and Chief Executive of the Corporation (MD/CEO), Oludare Sunday, asserted unequivocally that the Corporation regularly remits either 20 per cent of its gross earnings or 80 per cent of its net surplus to the Federal Government, in strict compliance with statutory requirements. 

Sunday who asserted during a courtesy visit to the MD/CEO of the Ministry of Finance Incorporated (MoFI), Dr Armstrong Takang, as part of NDIC’s post assumption stakeholder engagement following his appointment in July 2025, further emphasized that NDIC consistently submits its audited financial statements ahead of statutory deadlines.

Sunday said NDIC’s operational philosophy has always been anchored on accountability, noting that its long-standing culture of financial discipline, transparency and strict adherence to statutory obligations underpins its mandate to protect depositors and strengthen confidence in Nigeria’s banking system.

According to him, the consistent compliance is central to NDIC’s role as a core institution within Nigeria’s financial safety-net architecture, charged with safeguarding depositors’ funds and promoting stability across the banking system.

He stressed that fiscal discipline remains fundamental to the credibility and effectiveness of the Corporation, especially at a time when public confidence in financial institutions is critical to economic stability.

Sunday also disclosed that NDIC complies with the Federal Government’s 50 percent cost-to-income ratio policy, although he noted that the requirement poses operational challenges for the Corporation.

He explained that the deductions resulting from the policy constrain NDIC’s capacity to grow a robust Deposit Insurance Fund, which is essential for timely and effective reimbursement of depositors in the event of bank failures.

According to him, global best practices, as outlined in the Core Principles for Effective Deposit Insurance issued by the International Association of Deposit Insurers, require deposit insurers to maintain adequate independent funds to meet their obligations without recourse to government intervention. 

He said NDIC is therefore seeking an exemption from the policy to strengthen its financial resilience and depositor protection capacity.

The NDIC chief described MoFI as a critical stakeholder, noting that the Federal Government, through MoFI, holds a 40 per cent equity stake in the Corporation. 

He said sustained collaboration with MoFI is essential to balancing NDIC’s obligations to the government with its statutory responsibility to depositors.

In his remarks, Takang commended NDIC for its cooperative approach and acknowledged the Corporation’s compliance with fiscal regulations. 

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He assured that MoFI would continue to engage the Federal Ministry of Finance on NDIC’s behalf, adding that a strong and well-funded NDIC is vital to maintaining confidence in Nigeria’s financial system.