By Adedapo Adesanya

The Nigeria Deposit Insurance Corporation (NDIC) has warned that the federal government’s 50 per cent cost-to-income ratio policy was limiting its ability to build a strong financial buffer to protect depositors.

The chief executive of the agency, Mr Thompson Sunday, in a statement by the Head of the Communication and Public Affairs Department, Mrs Hawwau Gambo, on Tuesday, said the NDIC complies with the policy but lamented that “the deductions affect NDIC’s ability to build a strong Deposit Insurance Fund, which is needed to respond effectively to bank failures.”

Mr Sunday restated the corporation’s adherence to fiscal and financial regulations, including the Fiscal Responsibility Act 2007, during a courtesy visit to the Managing Director/Chief Executive of the Ministry of Finance Incorporated (MOFI), Mr Armstrong Takang, in Abuja.

According to the statement, Mr Sunday stressed that the NDIC “complies fully with statutory remittance obligations, including the payment of 20 per cent of gross earnings or 80 per cent of net surplus to the Federal Government, as applicable,” adding that the corporation also submits its financial statements ahead of statutory deadlines.

The NDIC boss said this commitment to transparency aligns with its role as a key financial safety-net agency responsible for protecting depositors and supporting confidence in the banking system.

However, he cautioned that while the corporation also complies with the Federal Government’s 50 per cent cost-to-income ratio policy, “the policy poses operational constraints.”

He explained that maintaining a robust Deposit Insurance Fund is critical to the NDIC’s ability to respond promptly and effectively to bank failures without depending on government support.

He added that international standards under the Core Principles for Effective Deposit Insurance, issued by the International Association of Deposit Insurers, require deposit insurers to maintain adequate funds for this purpose.

To strengthen its capacity, Sunday said the NDIC is seeking an exemption from the policy.

He described MOFI as a critical stakeholder, noting that the Federal Government, through the agency, holds a 40 per cent equity stake in the NDIC.

According to him, continued collaboration is essential to ensure the NDIC meets its obligations to the government while safeguarding depositors’ funds.

In his remarks, Mr Takang commended the NDIC’s spirit of collaboration and its compliance with fiscal regulations.

He assured that MOFI would continue to engage the Federal Ministry of Finance on the NDIC’s behalf, adding that a strong NDIC is vital to maintaining confidence in the financial system.

Both institutions reaffirmed their commitment to cooperation, transparency and accountability.

The federal government’s 50 per cent cost-to-income ratio policy was introduced through a circular dated December 28, 2023, signed by the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun.

The circular directed federal agencies and parastatals to remit 50 per cent of their internally generated revenue to the Treasury Single Account as part of broader presidential fiscal directives.

The directive, to be implemented by the Office of the Accountant-General of the Federation in early January 2024, builds on existing rules for IGR remittances under the Fiscal Responsibility Act and related circulars, with the aim of improving revenue mobilisation and fiscal discipline across Ministries, Departments and Agencies (MDAs).

By Aduragbemi Omiyale

Customers of Ecobank Nigeria, a member of Africa’s leading pan-African banking group, have been assured of uninterrupted access to banking services throughout the year-end holiday period.

They can continue to carry out their financial transactions via the lender’s secure and robust digital platforms.

Ecobank also urged customers to remain vigilant against fraud and scams during the festive season, as fraudsters are looking to pounce on any gap.

“Before you wrap up the year, tighten your security. December brings online sales, travel, and year-end distractions—this is exactly when scammers are most active.

“From fake festive deals to cloned merchant sites and suspicious messages, staying vigilant helps keep your money safe,” the Head of Products & Analytics, Consumer & Commercial Banking at Ecobank Nigeria, Mr Victor Yalokwu, said in a statement.

He advised customers to shop only on trusted websites, never share their PINs, passwords, or one-time passwords (OTPs), avoid banking on public Wi-Fi networks, be cautious of urgent or emotionally charged messages, and regularly review their account activity.

He also disclosed that the bank’s digital channels — including Ecobank Cards, the Ecobank Mobile App, USSD *326#, Ecobank Online, OmniPlus, Omnilite, EcobankPay, RapidTransfer, ATMs, PoS terminals, and over 35,000 Ecobank Xpress Point (agency banking) locations nationwide — will remain fully available to support customers throughout the yuletide and year-end holiday period.

He noted that customers will continue to enjoy a wide range of services during the period, including local and international funds transfers, bill payments and airtime top-ups, merchant and QR payments, balance inquiries and account statements, as well as cardless cash withdrawals via ATMs.

According to Mr Yalokwu, “Ecobank encourages customers to leverage these digital solutions for safe, fast, and efficient banking, especially during the festive season when convenience and reliability are essential. While physical branch operations may be subject to adjusted working hours in line with public holidays, customers can be assured that Ecobank’s digital platforms are designed to deliver uninterrupted service and enhanced security at all times.

“Ecobank remains committed to providing innovative financial solutions and exceptional customer service, and we wish all our customers a joyful festive season and a prosperous New Year.”

By Margaret Banasko

“Detty December,” Nigeria’s unofficial end-of-year spectacle, is an annual economic boom of concerts and parties, amplified by the return of the “IJGB“ (I Just Got Back) crowd. This celebration drives massive discretionary spending and consumer euphoria.

However, this festive high often leads to a financial low; the “Long January.” This is when critical non-negotiable expenses like rent and school fees hit hard.

Do not treat December as a financial free-for-all. Savvy individuals and business leaders must reframe it as the final, crucial financial quarter. The goal is to shift from emotional spending to deliberate, strategic saving.

Here are five smart, actionable financial moves that are critical for maintaining fiscal discipline that will enable you to maximize the festive season’s enjoyment while effortlessly de-risking and prepping your finances for a strong Q1 trajectory.

• Capitalize on Discounted Bill Payments: The increased consumption of utilities, airtime, and data during this period necessitates higher essential recurring costs. Smart financial governance dictates actively seeking value on these high-frequency expenditures. Pay all essential bills from electricity tokens to data bundles and Cable TV subscriptions through a platform, such as the FairMoney app, that provides a direct financial incentive or cashback on purchases. This ensures that operational necessity does not unduly drain capital, as every percentage saved on recurring utilities is capital effectively preserved for critical Q1 requirements.

• Implement the 50/30/20 Rule Strategically: Acknowledge the inevitable social expenditure of Detty December by imposing a clear framework for resource allocation. This strategic rule dictates how your income must be distributed to ensure financial security. Divide your December income into three non-negotiable categories: Allocate 50 percent of your income directly to critical January financial requirements like rent, transportation, and structured debt payments; this sum must not be compromised. Allocate 30 percent to your discretionary December wants, covering social activities, gifts, and controlled splurges; once this budget threshold is met, spending must cease. Crucially, assign the remaining 20 percent to structured savings and investment.

  This 20 percent is non-negotiable and serves as the anchor for long-term wealth creation and a buffer against the Long January strain. You can automate this crucial 20 percent deduction before you even begin spending using the FairSave feature on the FairMoney App, which enables instant autosave while you earn daily interest and retain the flexibility to withdraw anytime.

• Convert Festive Windfalls into Capital: Do not view every incoming festive cash gift or unexpected bonus as mere spending money. Instead, strategically treat any financial “windfall” as a direct deposit into your future wealth accumulation. The 100 Percent Rule applies here: commit to saving or investing 100 percent of any financial gift, as this capital was not part of your planned income, offering a critical opportunity to grow your savings effortlessly. Immediately isolate any unexpected cash injections and categorize them as investment capital rather than disposable income.

By leveraging FairLock on the FairMoney App, you can save 100 percent of the festive cash into a fixed deposit. This ensures the funds are secure and illiquid, accruing interest over the stipulated savings period, which can then be released on maturity to sort out major Q1 projects or investments.

• De-Risk Your December Savings Strategy: FairMoney’s premium, revolving credit line up to ₦5,000,000, FlexiCredit, serves as a crucial liquidity shield over your protected capital. Instead of being forced to prematurely break fixed deposits or liquidate interest-earning savings accounts to cover sudden, urgent expenses such as an unexpected repair or a short-notice business need, you can immediately draw the required funds from your FlexiCredit limit.

This allows critical, ring-fenced funds to remain untouched, continue accruing interest, and maintain their full readiness for the inevitable “Long January” obligations like rent and school fees. FlexiCredit empowers the savvy individual who earns a minimum of ₦250,000 as salary to strategically manage cash flow and capture short-term high-return opportunities without depleting their primary savings or operational capital, offering immediate bridge financing, charged at a competitive 0.25 percent per day only on the amount utilized.

• Prioritize High-Value, Low-Cost Experiential Activities: While Detty December’s allure often stems from high-ticket social events and luxury venues, truly impactful celebrations are measured by the quality of connection, not the cost of admission. Instead of defaulting to expensive restaurant dinners, exclusive concerts, or impulse travel, strategically redirect your social budget toward creative, high-value experiential activities.

Organize themed potlucks with friends, host a family Christmas hangout at home, or explore local attractions like parks and museums that offer rich experiences without the premium price tag. By substituting generic, high-cost outings with thoughtful, collective events, you significantly slash discretionary spending while often increasing the depth and enjoyment of the festive season, guaranteeing maximum emotional return on minimum financial investment.

By applying these five smart moves, you assert control over your finances, ensuring you do not just survive Detty December and the Long January, but wrap up the year not just in celebration, but in financial style, positioning yourself for an empowered and prosperous New Year.

Margaret Banasko is the Head of Marketing at FairMoney MFB