NDIC wants exemption from government’s cost-to-income policy
The Nigeria Deposit Insurance Corporation, led by Thompson Sunday, says the Federal Government’s 50 per cent cost-to-income ratio policy is hampering its ability to build a strong financial buffer for depositors. The NDIC maintains it complies with all fiscal regulations, including statutory remittances and transparency requirements. During a visit to the Ministry of Finance Incorporated, Sunday highlighted the need for an exemption to better protect the banking system. Armstrong Takang of MOFI praised the NDIC’s compliance and pledged continued support.
TLDR
- Thompson Sunday warned that the 50% cost-to-income ratio policy limits the NDIC’s ability to strengthen its Deposit Insurance Fund.
- The NDIC complies with statutory remittance obligations, such as paying 20% of gross earnings or 80% of net surplus to the Federal Government.
- Sunday emphasized that international standards require deposit insurers to maintain adequate funds to respond to bank failures.
- The NDIC is seeking an exemption from the policy to improve its operational capacity.
- Armstrong Takang assured that MOFI will continue to support the NDIC and highlighted the importance of a strong NDIC for financial system confidence.
- The Federal Government’s 50% cost-to-income ratio policy was introduced through a circular dated December 28, 2023.
