Edun Urges NDIC Leadership to Fulfill Mandate of Depositor Protection and Financial Stability

Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has called on the Nigeria Deposit Insurance Corporation (NDIC) to uphold its statutory responsibilities to safeguard depositors and reinforce confidence in the banking system. Addressing management at NDIC headquarters in Lagos, Edun emphasized the strategic importance of diligent performance and proactive risk management in the wake of recent financial sector shocks.

Edun praised the NDIC for recent initiatives—such as prompt reimbursement of insured depositors of the defunct Heritage Bank—but stressed that the agency must not rest on its laurels. “Our economic framework relies on trust in the banking system. The NDIC’s mandate is to protect depositors and uphold financial stability, and that must remain non-negotiable,” he declared.

He highlighted critical expectations for the agency: timely payouts, efficiency in claims management, strengthened insurer resolution mechanisms, and robust risk mitigation practices across Nigerian banks. Edun noted that as the sector evolves faster—through fintech partnerships and regulatory reforms—NDIC must adapt its frameworks to remain effective and forward-looking.

NDIC’s Acting Managing Director responded by confirming that the corporation continues to meet payout obligations, including the ongoing liquidation of Heritage Bank assets. Insured deposit liability claims have been largely settled, while initial portions of uninsured claims are being disbursed. Edun urged management to accelerate asset recovery and intensify engagement with affected depositors, ensuring full legal compliance and transparency in liquidation protocols.

A key priority outlined during the meeting was the necessity for enhanced coordination with the Central Bank of Nigeria (CBN), to identify distressed banks early and activate resolution frameworks before crises escalate. Edun pointed to recent policy tools, such as bridge banks and capital injections, as important levers—but insisted that NDIC must play a decisive role in ensuring orderly resolution of failing institutions.

Deputy directors were also tasked with improving the corporation’s internal governance, pledging strengthened controls over operational risk, procurement, and financial disclosure. Edun underscored the need for better data analytics, predictive monitoring, and strengthened financial inclusion mandates—particularly in supporting low-income savers under the National Deposit Insurance Scheme.

The minister further demanded broader public engagement from NDIC, calling for more awareness campaigns to educate depositors about compensation limits, claims processes, and regulatory safeguards. He noted that misinformation often leads depositors to panic—something greater public education could alleviate.

Additionally, Edun encouraged collaboration with international financial safety-net institutions—including the Global Financial Safety Net—to build capacity, adopt global best practices, and ensure NDIC is equipped with modern governance standards. “We must align local frameworks with global benchmarks to ensure Nigeria remains credit-worthy and resilient,” he added.

Analysts say the minister’s directives come at a critical juncture, as Nigeria grapples with strained banking liquidity and heightened public skepticism following several bank closures and financial discontinuities in recent months. Effective NDIC performance, they say, is central to restoring trust and maintaining interbank stability.

In conclusion, Edun reiterated that the NDIC’s core function—once perceived as a peripheral regulator—is now central to national economic stability. He tasked the agency with completing ongoing payments, enhancing resolution capacity, and promoting depositor awareness. Failure to do so, he warned, could undermine broader reform momentum in the financial sector, potentially threatening confidence that years of policy and institutional reforms have worked to build.

Edun also stressed the importance of transparency and accountability in all NDIC operations, particularly as the corporation manages public funds and oversees the resolution of failing banks. He called for an internal audit of past interventions, to identify lessons learned and apply them to future crisis responses. According to him, this is necessary to ensure that the agency not only meets its obligations but also evolves into a more proactive institution capable of anticipating and containing systemic risks before they spiral out of control.

Furthermore, the minister urged NDIC to deepen its role in supporting Nigeria’s financial inclusion agenda by extending deposit insurance coverage to underserved and informal financial sectors, such as microfinance banks and mobile money platforms. He noted that as millions of Nigerians still operate outside the formal banking system, confidence in regulated financial institutions must be expanded to foster broader economic participation. By doing so, NDIC would not only be safeguarding depositors but also contributing directly to national development goals.