FRC Chairman Applauds NDIC for Prompt Remmitance of Operating Surplus
Oru Leonard
The Executive Chairman of the Fiscal Responsibility Commission (FRC), Victor Muruako, Esq., has commended the Nigeria Deposit Insurance Corporation (NDIC) for its prompt and consistent remittance of operating surplus into the Consolidated Revenue Fund (CRF), in line with the provisions of the Fiscal Responsibility Act (FRA), 2007.
Mr. Muruako made this commendation during a courtesy visit by the Managing Director/Chief Executive of the NDIC, Mr. 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. He stated 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.
“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,” Barrister Muruako said.
He further 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 Nigeria Deposit Insurance Corporation (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. Operating under the supervision of the Central Bank of Nigeria, NDIC plays a vital role in crisis resolution, depositor 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, it remains a public institution. It was listed in the Schedule to the Fiscal Responsibility Act, 2007, thereby making it fully subject 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 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.
In his remarks, the Managing Director/Chief Executive of the NDIC, Mr. Sunday Oludare Thompson, described the visit as a strategic stakeholder engagement, noting that the Commission was among the key institutions the Corporation considered essential to engage.
He stated that NDIC and FRC share similar mandates cantered 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 further noted that 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.
(FRC Media)
