NDIC Reports N53 billion Surplus, More Profitable Than Some Banks

Nairametrics| While some banks are experiencing decline in profits, and losses the National Deposit Insurance Corporation (NDIC) appears to be in buoyant financial health. The agency declared a N53 billion surplus for 2016.

The NDIC is the agency of government charged with insuring deposits. So in the event of a bank going bust, depositors will not lose all of their funds. It was established through Decree No. 22 on the 15th of June 1998.

In line with statutory requirements, 80% of the surplus will be forwarded to the Consolidated Federation Account of the Federal Government. One wonders though, has the NDIC always forwarded its operating surplus to the government? If so, why has this not come to light before? Is the corporation making maximum use of its operating surpluses? Perhaps some of the management at the NDIC need to be seconded to run commercial banks for a bit.
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