NDIC, CBN Reaffirm Commitment to Financial System Stability During High-Level Meeting

The newly appointed Managing Director/Chief Executive of the Nigeria Deposit Insurance Corporation (NDIC), Mr. Thompson Oludare Sunday, on Tuesday led a delegation of the Corporation’s top management to the Central Bank of Nigeria (CBN) Headquarters in Abuja, where they were warmly received by the CBN Governor, Mr. Olayemi Cardoso.

During the courtesy visit, both institutions reaffirmed their shared commitment to strengthening Nigeria’s financial system amid current economic uncertainties.

Mr. Cardoso congratulated Mr. Sunday and the new Executive Director of Operations, Dr. Kabir Katata, on their appointments and lauded the NDIC for its recent efforts in the financial sector. He expressed optimism about deepening collaboration between the CBN and NDIC, describing the visit as a testament to both agencies’ readiness to work together to ensure financial stability.

“Our meeting today is a clear testament to our willingness to work together. The CBN counts on NDIC’s support in navigating the uncertain times that we are in,” the CBN Governor stated.

He acknowledged that his two-year tenure had revealed critical lessons in the financial industry, requiring proactive approaches from regulators like the CBN and NDIC to manage risks and strengthen depositor confidence. Cardoso called for close cooperation between the two institutions to anticipate and mitigate shocks using modern financial stability tools.

In his remarks, NDIC MD Mr. Sunday commended the CBN’s reform agenda under Mr. Cardoso, particularly the ongoing recapitalization of Deposit Money Banks (DMBs) and the stabilization of the foreign exchange market.

He noted that the NDIC is undertaking a strategic restructuring in alignment with the NDIC Act 2023 (as amended) and is currently drafting a new corporate strategy to replace the existing plan, which expires at the end of 2025.

Mr. Sunday highlighted some of the Corporation’s recent achievements, including:

The payment of ₦54.62 billion to 691,418 depositors of the defunct Heritage Bank within a year of its closure.

The declaration of a liquidation dividend of 9.2 kobo per Naira for uninsured depositors.

Ongoing efforts to establish a target funding framework to strengthen the Corporation’s financial safety net.

He also outlined key operational challenges, such as:

The lack of a unique identifier like the BVN for corporate customers.

Difficulties in collecting premiums from insured institutions that do not maintain accounts with the CBN.

The NDIC Chief Executive expressed the Corporation’s readiness to work with the apex bank to bridge these gaps and proposed a joint crisis preparedness framework to enhance coordinated responses during financial crises.

Responding to the proposal, Mrs. Rita Sike, Director of the CBN’s Financial Policy and Regulation Department, affirmed that such a framework could be developed under the Financial Services Regulation Coordinating Committee (FSRCC). She also disclosed that the CBN was currently working on enhancing the Credit Risk Management System (CRMS) to integrate the Global Standing Instruction (GSI), which would enable the onboarding of Other Financial Institutions (OFIs).

The NDIC delegation included:

Dr. Kabir Katata, Executive Director, Operations

Mr. Yakubu Shehu, Director, Human Resources

Mr. Olufemi Kushimo, Director, Legal Department

Mrs. Regina Dimlong, Assistant Director, Communications & Public Affairs

The CBN team also featured:

Mrs. Rita Sike, Director, Financial Policy and Regulation Department

Mr. Nnadi Maduka, Corporate Communication Department

Mrs. Salamatu Jubril-Adeniji, Compliance Department

The meeting marks a renewed drive toward regulatory synergy and improved oversight of Nigeria’s financial institutions, with both agencies pledging to work collaboratively to safeguard depositor funds and ensure system-wide stability.