NDIC bolsters deposit fund buffers to shield banks from crises

The Nigeria Deposit Insurance Corporation (NDIC) has reaffirmed its commitment to strengthening its Deposit Insurance Funds (DIFs) as part of efforts to reinforce the stability and resilience of Nigeria’s financial system against potential banking sector crises.

Thompson Oludare Sunday, managing director and chief executive of the Corporation, disclosed this during a courtesy visit to Tanimu Yakubu, director-general of the Budget Office of the Federation, in Abuja, according to a statement signed by Hawwau Gambo, head, Communication & Public Affairs Department, NDIC.

Sunday said building strong Deposit Insurance Funds remains critical to enhancing the NDIC’s ability to respond effectively to systemic shocks in the banking sector without depending on government intervention.

According to him, while financial crises may be inevitable, the Corporation has consistently prioritised robust DIFs as a central component of its contingency planning and crisis preparedness framework.

He noted that the strategy enabled the NDIC to commence payments to depositors of Aso Savings & Loans and Union Savings & Loans within 72 hours of the Central Bank of Nigeria revoking the institutions’ operating licences in December 2025.

Sunday added that the Corporation would continue to deepen institutional collaboration with the Budget Office of the Federation and align its operations with the national budgetary framework.

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He said the NDIC remains committed to supporting evidence-based planning and enhancing its contributions to national economic growth and development through closer cooperation with the Budget Office.

The NDIC boss also underscored the importance of the Federal Government’s ambition to build a one-trillion-dollar economy by 2030, noting that the Corporation would continue to play a key role in supporting the realisation of that objective.

In his remarks, Yakubu commended the NDIC for maintaining transparency in the management of the Deposit Insurance Funds.

Yakubu urged the Corporation to adopt technology-driven investment strategies to further strengthen the funds for depositor protection in the event of bank failures and sustain public confidence in the financial system.

He also encouraged the NDIC to benchmark its investment instruments against global best practices adopted by other deposit insurance institutions to consolidate its funding framework further.

Hope Moses-Ashike

Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market movements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policymakers, and households. Her reporting helps readers understand complex issues such as inflation trends, foreign exchange market dynamics, interest rate decisions, bank performance, and investment risks. She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings. Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.