Joy Agwunobi
The Nigeria Deposit Insurance Corporation (NDIC) has called on stakeholders across the financial services industry, public policy institutions, and the general public to provide feedback on the newly revised Core Principles for Effective Deposit Insurance Systems, released in May 2025 by the International Association of Deposit Insurers (IADI).
According to the NDIC, the revision of the Core Principles marks a pivotal moment in the global evolution of deposit insurance frameworks, particularly as regulators and financial systems respond to the accelerating pace of digital innovation and recent episodes of systemic banking stress.
The Corporation noted that the updated document incorporates critical lessons from the global banking disturbances of March 2023, widely regarded as the most severe financial system shock since the 2007–2009 global financial crisis.
In a statement signed by Hawwau Gambo, head of communication and public affairs, the NDIC described the review as “a critical step in enhancing the resilience and relevance of deposit insurance systems globally, including Nigeria.” The Corporation emphasised that the revised principles would help bolster the country’s financial stability by aligning its deposit insurance practices with evolving global standards.
“The IADI Core Principles serve as a benchmark for evaluating the soundness of deposit insurance mechanisms in jurisdictions around the world,” the statement said. “They are used not only by national authorities such as the NDIC but also by global financial institutions like the International Monetary Fund (IMF) and the World Bank, especially during Financial Sector Assessment Programme (FSAP) evaluations.”
Originally developed in 2009 through a partnership between IADI and the Basel Committee on Banking Supervision (BCBS), the Core Principles were created to establish consistent international guidelines for deposit insurance. They have since been periodically reviewed to reflect new developments in financial services and banking supervision.
The current revision is focused on addressing structural shifts, such as the growing influence of fintech, the expanding role of deposit insurers in bank resolution regimes, and the adoption of enhanced risk management strategies amid financial market uncertainties.
As a founding and active member of IADI, the NDIC reiterated its commitment to supporting global best practices in financial safety nets and called on all relevant stakeholders to actively engage with the review process.
The Corporation has made the draft of the revised Core Principles publicly available on its website, urging institutional and individual stakeholders to download the document, review its content, and submit their recommendations or observations. Submissions must be made in PDF format and received by the NDIC on or before June 30, 2025.
NDIC stressed the importance of inclusive public engagement in refining the deposit insurance architecture, adding that collaborative input will be instrumental in shaping a more robust and adaptive financial protection system for Nigerian depositors.
“Public consultation ensures that the resulting framework reflects the diverse realities of the financial ecosystem,” the NDIC said, adding “It allows for a more inclusive approach to safeguarding depositors and reinforces trust in the financial system at large.”
As financial systems globally confront increasingly complex risks from cyber threats to liquidity crises and regulatory arbitrage NDIC’s proactive stance in aligning with IADI’s revised principles signals Nigeria’s readiness to adopt a more agile and globally coherent approach to deposit protection. The Corporation’s invitation for public commentary is seen as a step towards fostering deeper transparency and stakeholder participation in financial sector reforms.
