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L – R: Executive Director, Corporate Services, Nigeria Deposit Insurance Corporation (NDIC) Emily
Osuji; Managing Director/Chief Executive, Thompson Oludare Sunday; Director-General, Budget
Office of the Federation (BOF), Tanimu Yakubu; and NDIC’s Executive Director, Operations, Kabir S.
Katata during a courtesy visit by the NDIC’s Executive Management Team to the DG, BOF in Abuja
The Nigeria Deposit Insurance Corporation has reaffirmed its resolve to strengthen its Deposit Insurance Funds (DIFs) in a move aimed at deepening the resilience of Nigeria’s banking system and reducing the likelihood of government-funded bailouts during financial crises.
Managing Director and Chief Executive of the Corporation, Thompson Oludare Sunday, stated this during a courtesy visit to the Director-General of the Budget Office of the Federation, Tanimu Yakubu, in Abuja.
Sunday said the Corporation was intensifying efforts to build stronger Deposit Insurance Funds as part of a broader strategy to ensure financial system stability and safeguard depositors against shocks in the banking sector.
According to him, the strengthening of the funds has become increasingly critical in view of rising systemic risks within the global financial system, stressing that the NDIC is determined to maintain the financial capacity needed to respond swiftly to banking sector distress without depending on government intervention.
He noted that although financial crises may be unavoidable, the Corporation has consistently prioritised the growth of robust DIFs as a core element of its contingency planning and crisis management framework.
The NDIC boss pointed to the Corporation’s rapid response following the revocation of the operating licences of Aso Savings & Loans and Union Savings & Loans by the Central Bank of Nigeria in December 2025, saying the existence of strong insurance funds enabled the NDIC to commence payment to affected depositors within 72 hours.
The swift intervention, he said, helped to contain panic and sustain confidence in the financial system at a time when concerns over the health of some financial institutions were mounting.
Sunday further disclosed that the NDIC would continue to deepen institutional collaboration with the Budget Office of the Federation to align its operations with the Federal Government’s fiscal and economic priorities.
He added that the Corporation remained committed to evidence-based planning and prudent financial management as part of its contribution to economic growth and financial system stability.
The NDIC chief also linked the Corporation’s strategic focus to the Federal Government’s ambition of building a one-trillion-dollar economy by 2030, assuring that the Corporation would continue to play a pivotal role in protecting depositors and strengthening confidence in the nation’s financial architecture.
In his remarks, Yakubu commended the NDIC for what he described as transparency and prudence in the management of the Deposit Insurance Funds.
He urged the Corporation to embrace technology-driven investment strategies capable of improving returns on the funds while ensuring adequate protection for depositors in the event of bank failures.
Yakubu also advised the NDIC to benchmark its investment instruments and funding models against global best practices adopted by leading deposit insurance institutions across the world.
Analysts say the NDIC’s renewed focus on strengthening its insurance funds comes at a time when regulators across emerging markets are intensifying efforts to build buffers against potential financial shocks amid global economic uncertainty, elevated interest rates and increasing pressure on banking sector liquidity.
They noted that stronger Deposit Insurance Funds would not only enhance depositor confidence but also reinforce the stability of the financial system by ensuring quicker resolution of distressed financial institutions without exposing public finances to bailout risks.
