By Bassey Udo
The Nigeria Deposit Insurance Corporation (NDIC) has demonstrated exemplary compliance with the provisions of the Fiscal Responsibility Act (FRA) 2007with its prompt and consistent remittance of its operating surplus into the Consolidated Revenue Fund (CRF), the Chairman of the Fiscal Responsibility Commission (FRC), Victor Muruako, has said.
Speaking during a courtesy visit by the Managing Director/Chief Executive of the NDIC, Mr. Sunday Oludare Thompson, in his office in Abuja, Mr Muruako commended the NDIC for being one of the best-performing agencies, in terms of operating surplus remittance.
He said his observation was based on records available to the Commission, which showed that the NDIC has not only met its statutory obligations consistently, but also ranked among the first few agencies deserving recognition for compliance with the law.
“If there is any agency that should be awarded for remitting operating surplus consistently into the Consolidated Revenue Fund in strict compliance with the Fiscal Responsibility Act, NDIC would come first,” Muruako said.
The FRC Chairman called on the Central Bank of Nigeria (CBN) and other government-owned entities to emulate NDIC’s operational model, particularly in relation to transparency and timely remittance of operating surplus to the CRF.
The NDIC, he noted, is a statutory financial safety-net institution established to protect depositors, guarantee bank deposits, supervise insured financial institutions, and contribute to the stability of Nigeria’s financial system.
Operating under the supervision of the CBN, the NDIC plays a vital role in crisis resolution, depositors confidence, and overall systemic stability.
Although the NDIC is a self-funded agency, deriving its revenues mainly from premiums paid by insured institutions and investment income, Muruako said it remained a law abiding public institution.
Listed in the Schedule to the Fiscal Responsibility Act, 2007, he said the NDIC is therefore made to be fully subjected to the provisions of the Act from inception.
Sections 21–23 of the Fiscal Responsibility Act, 2007 require government-owned corporations and agencies listed in the Schedule to mandatorily remit 80 percent of their operating surplus to the Consolidated Revenue Fund, while retaining 20 percent.
While NDIC initially complied with the requirement to remit 80 percent of its operating surplus, the FRC Chairman said the framework has since evolved through amendments introduced by various Finance Acts and Finance Circulars.
Most recently, he said Finance Circular No. FMFCME/OTHERS/IGR/CRF/21/2023, dated 28 December 2023, amended Section 22 of the Act.
Under the revised framework, the NDIC is now required to remit 80 percent of 50 percent of its Gross Internally Generated Revenue (IGR) to the Consolidated Revenue Fund.
This adjustment, he pointed out, reflects the unique nature of self-funded regulatory agencies, while maintaining the principle of fiscal contribution to the Federation Account.
In his remarks, the Managing Director/Chief Executive of the NDIC, Mr. Sunday Oludare Thompson, who was accompanied on the visit by members of the NDIC new management team, described the visit as part of a strategic stakeholder engagement with key government partners and agencies.
Thompson said the FRC was among the key institutions considered essential to engage with ans familiarized with their operations.
The NDIC and FRC, he pointed out, share similar mandates bordering on promoting transparency, accountability, and public confidence in the management of government funds.
Mr. Thompson reaffirmed NDIC’s commitment to discharging its statutory responsibilities as provided by law, emphasizing that the Corporation would continue to comply fully with all fiscal and regulatory requirements.
He said the NDIC remains focused on building and sustaining its insurance funds in line with its mandate and pledged to strengthen collaboration and institutional relationships with the Fiscal Responsibility Commission in pursuit of sound financial governance.
