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

According to a statement signed by Hawwau Gambo, NDIC's Head of Communication & Public Affairs, the revision represents a significant step toward strengthening deposit insurance frameworks globally amid evolving financial landscapes.

Addressing Modern Financial Challenges

The NDIC emphasized that the revision will comprehensively address structural changes in the financial sector, including digital innovation, the expanding role of deposit insurers in resolution processes, and lessons learned from the March 2023 banking turmoil—described as the most significant systemic stress event since the 2007-09 global financial crisis.

"The IADI Core Principles are used by jurisdictions, including Nigeria, as a benchmark for assessing the quality of their deposit insurance systems and for identifying gaps in their deposit insurance practices and measures to address them," the statement noted.

These principles also serve as evaluation criteria for the International Monetary Fund (IMF) and the World Bank during Financial Sector Assessment Programmes (FSAP) to assess the effectiveness of deposit insurance systems across different jurisdictions.

Evolution of Core Principles

The first set of Core Principles was jointly issued by IADI and the Basel Committee on Banking Supervision (BCBS) in June 2009. The document undergoes periodic revisions to remain relevant amid changing global financial system dynamics.

This call for stakeholder input comes as the NDIC continues its work on several fronts, including the ongoing liquidation process of Heritage Bank. The Corporation recently commenced payout to depositors and has begun the sale of assets belonging to the defunct bank.

The NDIC has also announced plans to pay the first tranche of liquidation dividends to Heritage Bank depositors with funds exceeding the insured limit, with reports indicating a ₦46.6 billion liquidation dividend payment to these depositors.