NDIC Pledges to Bolster Deposit Insurance Funds to Safeguard Financial System Stability

*NDIC Pledges to Bolster Deposit Insurance Funds to Safeguard Financial System Stability*

_By Prince Benson Davies_

The Nigeria Deposit Insurance Corporation has restated its plan to deepen the strength of its Deposit Insurance Funds, describing the move as central to protecting the stability and resilience of Nigeria’s financial system. The Corporation said a well-capitalized fund base gives it the flexibility to act decisively in times of stress without depending on government bailouts.

Speaking during a courtesy visit to the Director-General of the Budget Office of the Federation, Tanimu Yakubu, in Abuja, the Managing Director and Chief Executive of the NDIC, Thompson Oludare Sunday, said building strong Deposit Insurance Funds remains a priority in the Corporation’s risk management framework. He explained that adequate funding equips the NDIC to respond swiftly and effectively to emerging threats in the banking sector.

Sunday noted that while financial system shocks cannot always be avoided, the NDIC has consistently treated robust DIFs as a core part of its contingency and crisis preparedness planning. He pointed to the Corporation’s recent handling of Aso Savings & Loans and Union Savings & Loans as evidence of this approach. Following the revocation of their licences by the Central Bank of Nigeria in December 2025, the NDIC began payments to affected depositors within 72 hours, a step he attributed to the readiness provided by the Corporation’s funding structure.

The NDIC chief also stressed that collaboration with the Budget Office is integral to aligning the Corporation’s operations with national fiscal planning. He said the NDIC will continue to work closely with the Budget Office to support evidence-based policy and to ensure its activities contribute meaningfully to broader economic growth and development objectives.

He further highlighted the Corporation’s role in supporting the Federal Government’s ambition of growing the economy to $1 trillion by 2030. According to him, a stable and credible deposit insurance system is a prerequisite for maintaining depositor confidence and attracting the investments needed to reach that target.

Responding, the Director-General of the Budget Office, Tanimu Yakubu, commended the NDIC for its transparent management of the Deposit Insurance Funds. He urged the Corporation to adopt technology-driven investment strategies to further strengthen the funds and enhance depositor protection in the event of bank failures. Yakubu also encouraged the NDIC to compare its investment instruments with global best practices applied by other deposit insurance agencies, noting that benchmarking would help consolidate the Corporation’s funding framework and sustain public trust in the financial system.