FRC Commends NDIC for Prompt Remittance of Operating Surplus 

The Fiscal Responsibility Commission, FRC, has commended the Nigeria Deposit Insurance Corporation, NDIC, for what it described as Prompt and consistent remittance of its operating surplus to the Consolidated Revenue Fund, CRF, in line with provisions of the Fiscal Responsibility Act, FRA Act, 2007.

Executive Chairman of the Commission, Victor Muruako made this commendation on Thursday in Abuja, during a courtesy visit by the Managing Director/Chief Executive of the NDIC, Sunday Oludare Thompson, alongside members of the Corporation’s new management team, at the Commission’s headquarters.

According to the FRC Chairman, NDIC has demonstrated exemplary compliance with the Fiscal Responsibility Act, describing the Corporation as one of the best-performing agencies in terms of operating surplus remittance, stating that based on records available to the Commission, “NDIC has consistently met its statutory obligations and would rank first among agencies deserving recognition for compliance.”

He said: “If there is any agency that should be awarded for remitting operating surplus into the Consolidated Revenue Fund in strict compliance with the Fiscal Responsibility Act, NDIC would come first.”

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He 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 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.

Its operation is under the supervision of the Central Bank of Nigeria, playing a vital role in crisis resolution, depositor confidence, and overall systemic stability.

Although the NDIC is a self-funded agency, deriving its revenue mainly from premiums paid by insured institutions and investment income, it remains a public institution. It was listed in the Schedule to the Fiscal Responsibility Act, 2007, thereby, making it subject to the provisions of the Act from inception.

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Sections 21–23 of the Fiscal Responsibility Act, 2007 require Government owned corporations and agencies, listed in the Schedule to remit 80 percent of their operating surplus to the Consolidated Revenue Fund.

While NDIC initially complied with the requirement to remit 80 percent of its operating surplus, the framework has since evolved through amendments introduced by various Finance Acts and Finance Circulars.

Most recently, 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 reflects the unique nature of self-funded regulatory agencies, while maintaining the principle of fiscal contribution to the Federation Account.

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In his remarks, the Managing Director/Chief Executive of the NDIC, Thompson, described the visit as a strategic stakeholder engagement, noting that the Commission was among the key institutions the Corporation considered essential to engage with.

“NDIC and FRC share similar mandates centered on promoting transparency, accountability, and public confidence in management of Government funds.

“We stand committed to discharging our statutory responsibilities as provided by law, and we would continue to comply with all fiscal and regulatory requirements,” he said.

He further noted that NDIC remains focused on building and sustaining its insurance funds in line with its mandate, pledging to strengthen collaboration and institutional relationships with the FRC in pursuit of sound financial governance.