The Managing Director of the Nigeria Deposit Insurance Corporation, Sunday Thompson Oludare, has said strong Deposit Insurance Funds are essential to maintaining stability in Nigeria’s financial sector amid growing concerns over bank liquidations.
Speaking during a visit by the Director-General of the Budget Office of the Federation, Tanimu Yakubu, in Abuja, the NDIC boss stressed that building resilient Deposit Insurance Funds remains critical to protecting the banking system from potential crises.
In a statement issued by NDIC spokesperson Hawwau Gambo, he explained that stronger DIFs would enhance the corporation’s capacity to respond effectively to systemic banking crises without depending on government intervention.
He noted that although financial crises are sometimes unavoidable, the NDIC continues to prioritise robust Deposit Insurance Funds as part of its contingency planning and crisis management strategy.
According to him, the corporation will also deepen collaboration with the Budget Office of the Federation and align its operations with the national budgetary framework to strengthen financial stability.
Nigeria’s financial sector continues to experience bank liquidations, including Aso Savings & Loans and Heritage Bank, underscoring ongoing concerns about banking stability and depositor protection.
