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The Managing Director and Chief Executive Officer of the Nigeria Deposit Insurance Corporation, Thompson Sunday, has reiterated the agency’s unwavering commitment to accountability and transparency in its regulatory activities.
In a statement released on Monday by Hawwau Gambo, Head of the Communication & Public Affairs Department at NDIC, Sunday shared this information during a courtesy visit to the MD/CEO of Ministry of Finance Incorporated (MOFI), Armstrong Takang.
He highlighted that the NDIC has consistently remitted the mandated percentage of its earnings to the Federal Government, in accordance with the provisions of the Fiscal Responsibility Act (FRA) of 2007.
He clarified that the corporation’s culture of compliance is in line with its role as a crucial institution within Nigeria’s financial safety net, tasked with safeguarding depositors and fostering confidence in the banking system.
Sunday also revealed that the NDIC adheres to the Federal Government’s 50 percent cost-to-income ratio policy; however, he pointed out that this policy imposes operational challenges, as the deductions hinder the NDIC’s ability to establish a robust Deposit Insurance Fund, which is essential for effectively addressing bank failures.
In his comments, Dr. Takang praised the NDIC for its exemplary cooperative spirit and acknowledged the corporation’s adherence to fiscal regulations. He assured that MOFI would continue to advocate for the NDIC with the Federal Ministry of Finance, emphasizing that a strong NDIC is crucial for maintaining confidence in Nigeria’s financial system.
What is the role of the NDIC?
The NDIC is responsible for protecting depositors and promoting confidence in Nigeria's banking system, serving as a key institution within the financial safety net.
How does the NDIC ensure compliance with regulations?
The NDIC consistently remits the required percentage of its earnings to the Federal Government and adheres to fiscal regulations, demonstrating a strong culture of compliance.
What challenges does the NDIC face?
The NDIC faces operational constraints due to the Federal Government’s 50 percent cost-to-income ratio policy, which impacts its ability to build a strong Deposit Insurance Fund for addressing bank failures.
Eze Chidiebere Paul
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