NDIC reaffirms commitment to strong deposit insurance funds for financial system stability

Stanley Ihedigbo

Nigeria Deposit Insurance Corporation (NDIC) has reiterated its commitment to continuously strengthening its Deposit Insurance Funds (DIFs) as part of broader efforts to reinforce the stability and resilience of Nigeria’s financial system.

The Managing Director/Chief Executive of the Corporation, Mr. Thompson Oludare Sunday, made this known during a courtesy visit to the Director-General of the Budget Office of the Federation, Mr. Tanimu Yakubu, in Abuja.

According to the Head, Communication & Public Affairs Department, Mr. Hawwau Gambo, Mr. Sunday explained that building strong and reliable Deposit Insurance Funds remains a critical priority for the NDIC, noting that it enhances the Corporation’s capacity to respond swiftly and effectively to potential systemic shocks in the banking sector without necessarily depending on government intervention.

According to him, while financial crises may be difficult to avoid in any economy, the NDIC has deliberately prioritized the accumulation and prudent management of robust DIFs as a key pillar of its contingency planning and crisis preparedness framework.

He highlighted that this strategic approach had already demonstrated its effectiveness, citing the Corporation’s ability to commence payments to depositors of Aso Savings & Loans and Union Savings & Loans within 72 hours following the revocation of their operating licences by the Central Bank of Nigeria in December 2025.

Mr. Sunday further stressed that the NDIC would continue to deepen institutional collaboration with the Budget Office of the Federation, ensuring stronger alignment with the national budgetary framework and broader fiscal policy objectives.

He added that the Corporation remains committed to evidence-based planning, improved operational efficiency, and enhanced contributions to Nigeria’s economic growth and development agenda.

The NDIC boss also underscored the Federal Government’s ambition of building a one-trillion-dollar economy by 2030, assuring that the Corporation would continue to play a strategic role in supporting the realization of that vision through financial system stability and depositor protection.

In his response, the Director-General of the Budget Office of the Federation, Mr. Tanimu Yakubu, commended the NDIC for what he described as its transparency and prudence in managing the Deposit Insurance Funds.

He urged the Corporation to further leverage technology-driven investment strategies to strengthen the funds, improve returns, and ensure sustained protection for depositors in the event of bank distress or failure.

Mr. Yakubu also encouraged the NDIC to benchmark its investment instruments and operational frameworks against global best practices adopted by leading deposit insurance institutions around the world, to further consolidate its funding architecture and enhance public confidence in the financial system.

The visit ended with mutual assurances of continued collaboration between both institutions toward safeguarding Nigeria’s financial stability and promoting sustainable economic growth.