Bank liquidation: Deposit Insurance Funds vital for Nigeria’s financial sector stability – NDIC DG

The Managing Director of Nigeria Deposit Insurance Corporation, Sunday Thompson Sunday, has said Deposit Insurance Funds, DIFs, are critical to the stability of the country’s financial sector.

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He disclosed this in a statement by NDIC’s spokesperson, Hawwau Gambo, after a visit by the Director-General of the Budget Office of the Federation, Mr. Tanimu Yakubu, in Abuja.

Sunday explained that the need to build strong DIFs is critical to enhancing the Corporation’s capacity to respond effectively to potential systemic crises in the banking sector without relying on government intervention.

He noted that while financial crises may be inevitable, the NDIC has consistently prioritized robust DIFs as a key component of its contingency planning and crisis preparedness framework.

The NDIC boss further stated that the corporation would continue to strengthen institutional collaboration with the Budget Office of the Federation and align its operations with the national budgetary framework.

DAILY POST reports that Nigeria’s financial sector has witnessed the liquidation of several banks, including Aso Savings & Loan and Heritage Bank.