NDIC Seeks Public Input on Insurance Standards Reform

The Nigeria Deposit Insurance Corporation (NDIC) has invited feedback from financial services industry stakeholders, policymakers, and the general public on the ongoing revision of the International Association of Deposit Insurers (IADI) Core Principles for Effective Deposit Insurance Systems.

In a statement issued by NDIC’s Head of Communication & Public Affairs, Hawwau Gambo, the initiative, launched by IADI in May 2025, aims to update the global framework to address structural changes in the evolving financial landscape.

Established in 2002, IADI helps jurisdictions improve the effectiveness of deposit insurance systems by developing effective policies and standards, monitoring their adoption in member jurisdictions, and collecting and analyzing data on deposit insurance and bank failures. The NDIC is one of the founding members of IADI.

The revision seeks to comprehensively address digital innovation, the growing role of deposit insurers in resolution, and lessons learned from the banking turmoil in March 2023, which was the most significant systemic stress event since the 2007-09 global financial crisis.

The IADI Core Principles serve as a benchmark for jurisdictions, including Nigeria, to assess the quality of their deposit insurance systems and identify gaps in their practices. These principles are also used by the International Monetary Fund (IMF) and the World Bank in the Financial Sector Assessment Programme (FSAP) to evaluate the effectiveness of deposit insurance systems globally.

The first set of Core Principles was issued jointly by IADI and the Basel Committee on Banking Supervision in June 2009, and the document undergoes periodic revisions to keep it aligned with evolving trends in the global financial system.

The NDIC reaffirmed its commitment to protecting depositors through supervision to ensure the safety and soundness of banking institutions. It also emphasized its role in safeguarding the interests of creditors and shareholders through its regulatory activities.