Revised Framework for the Differential Premium Assessment System in NDIC

REVISED FRAMEWORK
FOR DIFFERENTIAL
PREMIUM ASSESSMENT
SYSTEM OF NDIC
2025
NDIC
NDIC
Nigeria Deposit Insurance Corporation
Protecting your bank deposits

NDIC
Nigeria Deposit Insurance Corporation
Protecting your bank deposits
Revised Framework for
Differential Premium
Assessment System of NDIC
Document Control Page
Version
2.0
Document Division Executive Director, Operations Document Author Document Owner Insurance & Surveillance Department Nigeria Deposit Insurance Corporation First Version Issue 2008 Dated Reviewed March 2025 Next Review Date March 2028 Current Status Document Classification Frequency of Review Confidentiality Approved Public Three Years No part of this document shall be disclosed verbally or in writing, including repro- duction, to any third party without the prior consent and approval of Management of the Nigeria Deposit Insurance Corporation (NDIC). This document and its annex- Approval Name Thompson Oludare Sunday Emily Osuji (Mrs.) Designation Managing Director/ Chief Executive Executive Director, (Corporate Services) Executive Director, Kabir Sabo Katata (Dr.) (Operations) Signature Date Tel 02/10/25 40402/10/25 12/10/25 1

Table of Contents
1.0 Introduction
2.0
Objectives of the Framework
3.0
The Framework Principle and the IADI Essential Criteria 4.0 Legal Basis of the Framework 5.0 Scope of Application 6.0 7.0 Rationale for the Review of Extant DPAS Framework Methodology of the Framework 7.1 Assessment Model for the NDIC DPAS 7.2 DPAS Structure 7.3 Regulatory Returns and Reports 7.4 Filing of Returns by Insured Institutions 7.5 7.6 8.0 9.0 7.7 DPAS Rating Reports Premium Assessment Period Review of Insured Institution's Premium Rate Compliance with Statutory and Regulatory Requirements Monitoring and Enforcing Compliance
10.0 Key Success Factors
11.0 Effective Date
12.0 Review Cycle
13.0 Enquiries
14.0 Annexure
14.1 Definitions of Key Terms
14.2 List of Abbreviations
2

1.0 Introduction
The adoption of the Differential Premium Assessment System (DPAS) by the Nigeria Deposit Insurance Corporation (NDIC) aims to distinguish premiums payable by insured financial institutions based on their respective risk profiles. The adoption of the Differential Premium Assessment System (DPAS) by the Nigeria Deposit Insurance Corporation (NDIC) aims to distinguish premiums payable by insured financial institutions based on their respective risk profiles. Classifying banks into various risk buckets and applying different premium rates based on each bank's perceived riskiness forms the basis of a DPAS. Classifying banks into various risk buckets and applying different premium rates based on each bank's perceived riskiness forms the basis of a DPAS. Hence, an institution with a higher/lower risk profile would have a higher/lower premium rate. Hence, an institution with a higher/lower risk profile would have a higher/lower premium rate. Prior to the adoption of DPAS, the Corporation implemented a flat rate premium system from 1989 to 2007 for Deposit Money Banks (DMBs); from 2006-2016 for Primary Mortgage Banks (PMBs); and from 2006-2020 for Microfinance Banks (MFBs). Prior to the adoption of DPAS, the Corporation implemented a flat rate premium system from 1989 to 2007 for Deposit Money Banks (DMBs); from 2006-2016 for Primary Mortgage Banks (PMBs); and from 2006-2020 for Microfinance Banks (MFBs). The premium payable to NDIC was assessed at a uniform rate across all insured banks. The premium payable to NDIC was assessed at a uniform rate across all insured banks. In 2008, the NDIC transitioned from flat-rate premium assessment to DPAS, which was applied to Commercial and Merchant banks (DMBs). In 2008, the NDIC transitioned from flat-rate premium assessment to DPAS, which was applied to Commercial and Merchant banks (DMBs). Subsequently, it was adopted for Non-Interest Banks (NIBs) in 2012; PMBs in 2017; and MFBs & Payment Service Banks (PSBs) in 2021. Subsequently, it was adopted for Non-Interest Banks (NIBs) in 2012; PMBs in 2017; and MFBs & Payment Service Banks (PSBs) in 2021. The Initial DPAS Framework of the NDIC was issued in 2007. The Initial DPAS Framework of the NDIC was issued in 2007. This Revised DPAS Framework seeks to document the key elements of the NDIC DPAS which have been reviewed to make it more risk-sensitive due to significant changes that have taken place in the Nigeria banking system and conform to the recommendations of the International Association of Deposit Insurers (IADI) and other global best practices. This Revised DPAS Framework seeks to document the key elements of the NDIC DPAS which have been reviewed to make it more risk-sensitive due to significant changes that have taken place in the Nigeria banking system and conform to the recommendations of the International Association of Deposit Insurers (IADI) and other global best practices.
2.0 Objectives of the Framework
The specific objectives of risk-based pricing of deposit insurance and this DPAS Framework are:
i. To introduce fairness into the premium assessment process;
ii. To introduce fairness into the premium assessment process;
To encourage effective risk management practice in insured institutions;
iii. To encourage effective risk management practice in insured institutions;
To apply a risk differential approach in the deposit insurance premium assessment of insured institutions; 3

iv. To apply a risk differential approach in the deposit insurance premium assessment of insured institutions;
To allow insured institutions in the lower risk categories to pay relatively lower premium rates;
v. To allow insured institutions in the lower risk categories to pay relatively lower premium rates;
To charge insured institutions in the higher risk categories additional premiums for their extra risks;
vi. To charge insured institutions in the higher risk categories additional premiums for their extra risks;
To incentivise regulatory compliance; and
vii. To incentivise regulatory compliance; and
To mitigate moral hazard.
3.0 The Framework Principle and the IADI Essential Criteria
The NDIC risk-adjusted deposit insurance pricing is anchored on the premise that the cost of deposit insurance premiums and the coverage level should neither over-burden the banking system nor be largely subsidised by public funding (tax-payers' money). The NDIC risk-adjusted deposit insurance pricing is anchored on the premise that the cost of deposit insurance premiums and the coverage level should neither over-burden the banking system nor be largely subsidised by public funding (tax-payers' money). IADI Core Principle 9 "Sources and Uses of Funds" provides that a deposit insurer should have readily available funds and all funding mechanisms necessary to ensure prompt reimbursement of depositors' claims and that the responsibility for paying the cost of deposit insurance should be borne by banks. IADI Core Principle 9 "Sources and Uses of Funds" provides that a deposit insurer should have readily available funds and all funding mechanisms necessary to ensure prompt reimbursement of depositors' claims and that the responsibility for paying the cost of deposit insurance should be borne by banks. The essential criteria recommended that if the deposit insurer uses differential premium systems:
i. The essential criteria recommended that if the deposit insurer uses differential premium systems:
The system for calculating premiums is transparent to all participating institutions;
ii. The system for calculating premiums is transparent to all participating institutions;
The scoring/premium categories are significantly differentiated; and
iii. The scoring/premium categories are significantly differentiated; and
The ratings and rankings resulting from the system pertaining to individual banks are kept confidential. The ratings and rankings resulting from the system pertaining to individual banks are kept confidential.
4.0 Legal Basis of the Framework
i. Section 22 of the NDIC Act 2023, provides that all deposits of a
licenced bank or any other deposit-taking financial institution shall be insured with the Corporation with the exception:
a. Section 22 of the NDIC Act 2023, provides that all deposits of a licenced bank or any other deposit-taking financial institution shall be insured with the Corporation with the exception:
Insider deposits, that is, deposits of staff including directors of the insured institutions; b. Insider deposits, that is, deposits of staff including directors of the insured institutions; Counterclaims from a person who maintained both deposit and loan account, the former serving as collateral for the loan;
c. Counterclaims from a person who maintained both deposit and loan account, the former serving as collateral for the loan;
Inter-bank Placements¹; and
1 Inter-bank Placements implies Inter-bank Takings 4

iii. ii.
d. Inter-bank Placements¹; and
Such other deposits as may be specified by the Board. Such other deposits as may be specified by the Board.
Section 23 (1) and (2) of the Act, requires every insured institution
to pay to the Corporation an annual premium and subject to subsection (4) the assessment of premium shall be on a risk-based basis by reference to total deposit liabilities standing in its books as at 31st December of the preceding year. Section 23 (1) and (2) of the Act, requires every insured institution to pay to the Corporation an annual premium and subject to subsection (4) the assessment of premium shall be on a risk-based basis by reference to total deposit liabilities standing in its books as at 31st December of the preceding year. Hence, the adoption of the Differential Premium Assessment System in NDIC. Hence, the adoption of the Differential Premium Assessment System in NDIC. Furthermore, Section 23 (4) of the Act has given the Corporation the power to vary the rate or basis of assessment of the premium payable to the Corporation by insured institutions or to charge an insured institution or any class of insured institutions premium at a rate or rates as may be determined by the Board. Furthermore, Section 23 (4) of the Act has given the Corporation the power to vary the rate or basis of assessment of the premium payable to the Corporation by insured institutions or to charge an insured institution or any class of insured institutions premium at a rate or rates as may be determined by the Board.
iv. The rate or basis of assessment of the premium payable to the
Corporation by insured institutions shall be published in the Federal Government Gazette, Section 23 (5). The rate or basis of assessment of the premium payable to the Corporation by insured institutions shall be published in the Federal Government Gazette, Section 23 (5).
V. Sections 23 (11) and (12), where an insured institution is in default
of premium or special contribution, empowers the CBN at the written request of the Corporation, to debit the account of DMB or cause the relevant correspondent bank to debit the account of other deposit-taking financial institutions, of the unpaid amount and accrued interest for the benefit of the Corporation. Sections 23 (11) and (12), where an insured institution is in default of premium or special contribution, empowers the CBN at the written request of the Corporation, to debit the account of DMB or cause the relevant correspondent bank to debit the account of other deposit-taking financial institutions, of the unpaid amount and accrued interest for the benefit of the Corporation.
vi. In line with section 24, a premium due from an insured institution
to the Corporation shall not be reduced, adjusted, or withheld on the basis of any set-off or claim that an insured institution may have against the Corporation. In line with section 24, a premium due from an insured institution to the Corporation shall not be reduced, adjusted, or withheld on the basis of any set-off or claim that an insured institution may have against the Corporation.
vii. Sections 32 (1), (3d) (4) and 33 empower the Corporation - where
an insured institution is in default with its payment of annual premium or special contribution as provided in section 23 of the NDIC Act - to terminate the insured status (remove an institution from its register of insured institution) after a warning notice, with the concurrence of the CBN. Sections 32 (1), (3d) (4) and 33 empower the Corporation - where an insured institution is in default with its payment of annual premium or special contribution as provided in section 23 of the NDIC Act - to terminate the insured status (remove an institution from its register of insured institution) after a warning notice, with the concurrence of the CBN. 5

5.0 Scope of Application
The Revised Framework shall be applied to all insured banks in Nigeria which include Commercial Banks (CBs), Merchant Banks (MBs), Non- Interest Banks (NIBs) and Non-Interest Windows; Microfinance Banks (MFBs); Primary Mortgage Banks (PMBs); Payment Service Banks (PSBs), Non-Interest Microfinance Banks (NIMFBs) and such other deposit-taking institutions in Nigeria that may be licenced by the CBN. The Revised Framework shall be applied to all insured banks in Nigeria which include Commercial Banks (CBs), Merchant Banks (MBs), Non- Interest Banks (NIBs) and Non-Interest Windows; Microfinance Banks (MFBs); Primary Mortgage Banks (PMBs); Payment Service Banks (PSBs), Non-Interest Microfinance Banks (NIMFBs) and such other deposit-taking institutions in Nigeria that may be licenced by the CBN.
6.0 Rationale for the Review of Extant DPAS Framework
The need to periodically review, up-date and fine-tune DPAS is to ensure the sustainability of the system and comply with best practices. The need to periodically review, up-date and fine-tune DPAS is to ensure the sustainability of the system and comply with best practices. Therefore, this review was necessitated by the need to address observed gaps in the extant DPAS framework, challenges of operationalizing the framework, align with Risk Based Supervisory Rating/Approaches and for a more robust calibration of a Risk-Adjusted Premium Assessment of the NDIC. Therefore, this review was necessitated by the need to address observed gaps in the extant DPAS framework, challenges of operationalizing the framework, align with Risk Based Supervisory Rating/Approaches and for a more robust calibration of a Risk-Adjusted Premium Assessment of the NDIC.
7.0 Methodology of the Framework
7.1 Assessment Model for the NDIC DPAS
IADI² recommended four models for pricing deposit insurance which include the Structural Option Pricing Model, Empirical Expected Loss Model, Bucketing Approach, and Fund Size Calculations. IADI² recommended four models for pricing deposit insurance which include the Structural Option Pricing Model, Empirical Expected Loss Model, Bucketing Approach, and Fund Size Calculations. In the Revised Framework, the NDIC adopted the Bucketing Approach for its DPAS. In the Revised Framework, the NDIC adopted the Bucketing Approach for its DPAS.
7.2 DPAS Structure
7.2.1 DPAS Template
i. The NDIC DPAS Template uses two primary stages of deposit insurance
pricing (determination of premium rate), namely:
Determination of a Base Premium Rate (Ro) for all banks; and
ii. The NDIC DPAS Template uses two primary stages of deposit insurance pricing (determination of premium rate), namely:
Determination of a Base Premium Rate (Ro) for all banks; and Determination of add-ons based on the individual bank's risk profile using both quantitative and qualitative factors. Determination of add-ons based on the individual bank's risk profile using both quantitative and qualitative factors. The add-ons are linked to the Composite Risk Score (CRS) of the individual insured financial institution. The add-ons are linked to the Composite Risk Score (CRS) of the individual insured financial institution. 2 IADI. 2020. Evaluation of Differential Premium Systems for Deposit Insurance. Available at:
https://www.iadi.org/uploads/DPS_Paper_final_16June2020_Final.pdf 6

The premium rate would be computed quarterly, and the average for the four quarters would be used to determine the premium payable by multiplying each institution's premium rate by its total assessable deposits reported in the external auditors' certified statement of total deposit liabilities or the returns as at 31st December of the preceding year. The premium rate would be computed quarterly, and the average for the four quarters would be used to determine the premium payable by multiplying each institution's premium rate by its total assessable deposits reported in the external auditors' certified statement of total deposit liabilities or the returns as at 31st December of the preceding year. The Template is based on the CAMELS parameters, with the quantitative criteria carrying 75% of the total add-ons score (0.30) or 0.225 of the add- ons and the qualitative criteria accounting for 25% or 0.075. The Template is based on the CAMELS parameters, with the quantitative criteria carrying 75% of the total add-ons score (0.30) or 0.225 of the add- ons and the qualitative criteria accounting for 25% or 0.075. The quantitative factors are Capital Adequacy, Asset Quality, Earnings & Profitability, Liquidity & Funds Management and Sensitivity to Market Risk; while the qualitative factor is Management & Corporate Governance. The quantitative factors are Capital Adequacy, Asset Quality, Earnings & Profitability, Liquidity & Funds Management and Sensitivity to Market Risk; while the qualitative factor is Management & Corporate Governance. Below is the summary of parameters and the accompanying weights as used in the CBN/NDIC Composite Bank Rating that is expected to feed into the DPAS Template: Below is the summary of parameters and the accompanying weights as used in the CBN/NDIC Composite Bank Rating that is expected to feed into the DPAS Template:
Table 1: Composite Risk Rating Computation
Parameters
Weights Credit Weighted Credit Points
(%) points
Capital Adequacy
20
CP1
WCP1 = CP1WEIGHTS/100
Asset Quality
15
CP2
WCP2 = CP2WEIGHTS/100
Earnings & Profitability
20
CP3
WCP3 = CP3WEIGHTS/100
Liquidity & Funds
15
CP4
WCP4 = CP4WEIGHTS/100
Management
Sensitivity to Market Risk
5
CP5
WCP5 = CP5WEIGHTS/100
Management
25
CP6
WCP6 = CP6WEIGHTS/100
&Corporate Governance
Total
100
SWCP = COMPOSITE RATING
Weighted Credit Points = component points x weights/100; Composite Rating = sum of weighted credit points =WCP. Ratings (Low, Moderate, Above Average and High Risks) are assigned to banks based on the Total Composite Score, where COMPOSITE SCORE is the Summation of all the Weighted Credit Points for all items in the Bank Rating Computation. 7

Table 2: Composite Risk Rating Categorisation
S/No
Score
Risk Rating
Abbreviations
1
80≤X≤100
Low
L
2
60<X<80
Moderate
M
3
50<X<60
Above Average
AA
4
0≤X<50
High
H
Rating L-Low Risk the highest (best) rating. It is an indication that the institution is very sound in all respects. Rating H - High Risk is the lowest (worst) rating. An institution rated in this category has high immediate probability of failure.
7.2.2 Premium Base Rate and Add-ons Computation for Different Categories
of Insured Institutions
7.2.2.1 Premium Base Rate and Add-ons Computation for DMBs
The DPAS Template for DMBs is made up of the Base Rate (Ro) of 0.30% and maximum Add-ons of 0.35%. The DPAS Template for DMBs is made up of the Base Rate (Ro) of 0.30% and maximum Add-ons of 0.35%. The estimated add-on for a DMB is dependent on the CRS of that individual insured DMB, as shown in Table 3. The estimated add-on for a DMB is dependent on the CRS of that individual insured DMB, as shown in Table 3. This section revises the previous the Base Rate (Ro) of 0.35% and maximum Add-ons of 0.30% as an incentive to encourage banks to embrace better risk management practices. This section revises the previous the Base Rate (Ro) of 0.35% and maximum Add-ons of 0.30% as an incentive to encourage banks to embrace better risk management practices.
Table 3: Premium Base Rate and Add-ons Computation for DMBs
PARAMETER
BASE RATE (%)
FORMULA
=0.30
MAXIMUM ADD-ON (%)
=0.35
ESTIMATED ADD-ON PER DMB (%)
= 0.35 [1-(CRS/100)]
PREMIUM RATE
= {0.30 + (0.35[1-(CRS/100)])}/100
NOTE: 1. Base rate is 0.30% irrespective of the DMB's Rating.
2. CRS - Composite Risk Score of individual DMB derived from the CBN/NDIC Bank Rating Matrix.
7.2.2.2 Premium Base Rate and Add-ons Computation for PSBs
The DPAS Template for PSBs is made up of the Base Rate (Ro) of 0.10% and maximum Add-ons of 0.10%. The DPAS Template for PSBs is made up of the Base Rate (Ro) of 0.10% and maximum Add-ons of 0.10%. The estimated add-on for a PSB is dependent on the CRS of that individual insured PSB as shown in Table 4. The estimated add-on for a PSB is dependent on the CRS of that individual insured PSB as shown in Table 4. 8

Table 4: Premium Base Rate and Add-ons Computation for PSBs
PARAMETER
BASE RATE (%)
MAXIMUM ADD-ON (%)
ESTIMATED ADD-ON (%)
=0.10
FORMULA
=0.10
= 0.10 [1-(CRS/100)]
PREMIUM RATE
= {0.10 + (0.10[1-(CRS/100)])}/100
NOTE: 1. Base rate is 0.10 irrespective of the PSB's Rating.
2. CRS-Composite Risk Score of individual PSB derived from the CBN/NDIC Bank Rating Matrix.
7.2.2.3
Premium Base Rate and Add-ons Computation for PMBs The DPAS Template for PMBs is made up of the Base Rate (Ro) of 0.30% and maximum Add-ons of 0.25%. The DPAS Template for PMBs is made up of the Base Rate (Ro) of 0.30% and maximum Add-ons of 0.25%. The estimated add-on for a PMB is dependent on the CRS of that individual insured PMB as shown in Table 5. The estimated add-on for a PMB is dependent on the CRS of that individual insured PMB as shown in Table 5.
Table 5: Premium Base Rate and Add-ons Computation for PMBs
PARAMETER
BASE RATE (%)
MAXIMUM ADD-ON (%)
FORMULA
=0.30
=0.25
ESTIMATED ADD-ON (%)
= 0.25 [1-(CRS/100)]
PREMIUM RATE
= {0.30 + (0.25[1-(CRS/100)])}/100
NOTE: 1. Base rate is 0.30 irrespective of the PMB's Rating;
2. CRS-Composite Risk Score of individual PMB derived from the CBN/NDIC Bank Rating Matrix.
7.2.2.4 Premium Base Rate and Add-ons Computation for MFBs
The DPAS Template for MFBs is made up of the Base Rate (Ro) of 0.20% and maximum Add-ons of 0.25%. The DPAS Template for MFBs is made up of the Base Rate (Ro) of 0.20% and maximum Add-ons of 0.25%. The estimated add-on for an MFB is dependent on the CRS of that individual insured MFB as shown in Table 6. The estimated add-on for an MFB is dependent on the CRS of that individual insured MFB as shown in Table 6.
Table 6: Premium Base Rate and Add-ons Computation for MFBs
PARAMETER
BASE RATE (%)
FORMULA
=0.20
MAXIMUM ADD-ON (%)
=0.25
ESTIMATED ADD-ON (%)
= 0.25 [1-(CRS/100)]
PREMIUM RATE
= {0.20 + (0.25[1-(CRS/100)])}/100
NOTE: 1. Base rate is 0.20 irrespective of the MFB's Rating.
2. CRS - Composite Risk Score of individual MFB derived from the CBN/NDIC Bank Rating Matrix.
9

However, because of the large number of MFBs and the challenges of the sub- sector, not all the MFBs are examined annually, which may impede the effective execution of the DPAS Framework. However, because of the large number of MFBs and the challenges of the sub- sector, not all the MFBs are examined annually, which may impede the effective execution of the DPAS Framework. In such an instance, the rating of such MFB in its latest available examination report shall be used to compute the add-ons for that MFB in the premium assessment period. In such an instance, the rating of such MFB in its latest available examination report shall be used to compute the add-ons for that MFB in the premium assessment period.
7.3 Regulatory Returns and Reports
The following types of returns and reports, amongst others, are expected to be rendered by the insured institution for the determination of differential premium rates, assessment of financial conditions, determination of the Composite Risk Rating of insured institutions, and other purposes:
i. The following types of returns and reports, amongst others, are expected to be rendered by the insured institution for the determination of differential premium rates, assessment of financial conditions, determination of the Composite Risk Rating of insured institutions, and other purposes:
Monthly and Quarterly Statutory Returns;
ii. Monthly and Quarterly Statutory Returns;
Approved Annual Audited Accounts and Reports;
iii. Approved Annual Audited Accounts and Reports;
Certified Statement of Deposit Liabilities;
iv. Certified Statement of Deposit Liabilities;
Returns on Fraud and Forgeries; and
V. Returns on Fraud and Forgeries; and
Risk-Based Examination Reports from CBN/NDIC. Risk-Based Examination Reports from CBN/NDIC.
7.4 Filing of Returns by Insured Institutions
i. For the determination of applicable premium rate, every insured financial
institution is required under this Framework to submit periodic returns in line with the Acts and circular below:
Section 36 (1) of NDIC Act 2023 requires every insured institution to
submit to the Corporation such returns and information as may be required within the stipulated period.
ii. For the determination of applicable premium rate, every insured financial institution is required under this Framework to submit periodic returns in line with the Acts and circular below:
Section 36 (1) of NDIC Act 2023 requires every insured institution to submit to the Corporation such returns and information as may be required within the stipulated period.
Section 24 (1) of BOFIA 2020 requires every bank to submit not later than
five days after the last day of each month or such other specified interval, a Statements showing: (a) The assets and liabilities of the bank, (b) An Analysis of Advances and other assets. Section 24 (1) of BOFIA 2020 requires every bank to submit not later than five days after the last day of each month or such other specified interval, a Statements showing: (a) The assets and liabilities of the bank, (b) An Analysis of Advances and other assets.
Section 24 (2) specifies that every
bank shall submit such other information, documents, statistics or returns as the CBN may deem necessary. Section 24 (2) specifies that every bank shall submit such other information, documents, statistics or returns as the CBN may deem necessary. This is further clarified in the "iii" below. This is further clarified in the "iii" below.
iii. CBN Circular BSD/DIR/GEN/LAB/07/011 dated 10th April, 2014 requires
all banks to submit Daily, Monthly, Quarterly, and Semi-Annual returns via FinA. CBN Circular BSD/DIR/GEN/LAB/07/011 dated 10th April, 2014 requires all banks to submit Daily, Monthly, Quarterly, and Semi-Annual returns via FinA. The timelines for submission of statutory returns by reporting institutions through FinA are: The timelines for submission of statutory returns by reporting institutions through FinA are:
10

Table 7: Statutory Returns Submission Deadlines
Statutory Returns
Daily Returns
Filing deadline
To be submitted on or before 10.00 a.m. of the following working day.
Monthly, Quarterly and To be submitted on or before the 5th day after the Semi-Annual Returns iv. month's end. Where the 5th day happens to be a weekend or public holiday, returns should be submitted the previous day. Where an insured institution fails to file returns as and when required, the NDIC shall assign the maximum premium rate applicable to that institution type in determining the premium payable by it.
7.5 DPAS Rating Reports
i. Where an insured institution fails to file returns as and when required, the NDIC shall assign the maximum premium rate applicable to that institution type in determining the premium payable by it.
Each insured financial institution, upon a written demand, would be provided with its risk rating and other relevant supporting documents employed in the determination of its risk rating. Each insured financial institution, upon a written demand, would be provided with its risk rating and other relevant supporting documents employed in the determination of its risk rating. Such rating report would assist the insured institution to re-evaluate its current level of risk, strengthen risk controls and deploy appropriate treatments to improve its risk score. Such rating report would assist the insured institution to re-evaluate its current level of risk, strengthen risk controls and deploy appropriate treatments to improve its risk score.
ii. Each insured financial institution, its director, officer, employee or agent
shall maintain confidentiality of its institution's composite risk score, risk rating, premium rates, and are precluded from disclosing any of the confidential information to other insured institutions, unauthorised external parties and the general public. Each insured financial institution, its director, officer, employee or agent shall maintain confidentiality of its institution's composite risk score, risk rating, premium rates, and are precluded from disclosing any of the confidential information to other insured institutions, unauthorised external parties and the general public. The confidential information shall not be published in any advertisement, annual report and prospectus so as not to cause disruption in the financial system or give an undue competitive advantage to any insured institution. The confidential information shall not be published in any advertisement, annual report and prospectus so as not to cause disruption in the financial system or give an undue competitive advantage to any insured institution. However, as required by law, the amount of premium paid may be disclosed. However, as required by law, the amount of premium paid may be disclosed.
7.6 Premium Assessment Period
7.6.1 In line with Section 23 (1) (2) & (3) of the NDIC Act 2023, every
insured institution is required to pay to the Corporation an annual premium and subject to subsection (4) the assessment of premium shall be on a risk-based basis by reference to total deposit liabilities 11

i. In line with Section 23 (1) (2) & (3) of the NDIC Act 2023, every insured institution is required to pay to the Corporation an annual premium and subject to subsection (4) the assessment of premium shall be on a risk-based basis by reference to total deposit liabilities
standing in its books as at 31st December of the preceding year in the following manner:
The deposit liabilities shall be as certified by the approved auditor of the insured institution;
ii. standing in its books as at 31st December of the preceding year in the following manner:
The deposit liabilities shall be as certified by the approved auditor of the insured institution; The certified deposit liabilities shall be forwarded to the Corporation on or before 31st January of every year; and
iii. The certified deposit liabilities shall be forwarded to the Corporation on or before 31st January of every year; and
The annual premium shall be payable not later than two months from the date of the demand notice. The annual premium shall be payable not later than two months from the date of the demand notice.
7.6.2 Section 23 (8) of NDIC Act, any premium payable by an insured
institution and which remains unpaid for more than three months after a demand notice had been served on such institution, shall attract interest at a rate equivalent to the prevailing Monetary Policy Rate of the Central Bank of Nigeria or any other applicable rate as may be specified by the Board. Section 23 (8) of NDIC Act, any premium payable by an insured institution and which remains unpaid for more than three months after a demand notice had been served on such institution, shall attract interest at a rate equivalent to the prevailing Monetary Policy Rate of the Central Bank of Nigeria or any other applicable rate as may be specified by the Board.
7.6.3 However, where an insured financial institution fails to render its
certified deposit liabilities as and when due, the NDIC shall use the Statutory Returns for the determination of the deposit liabilities. However, where an insured financial institution fails to render its certified deposit liabilities as and when due, the NDIC shall use the Statutory Returns for the determination of the deposit liabilities.
7.7 Review of Insured Institution's Premium Rate
i. The assessed insured financial institution may seek in writing for
clarification or review of its premium rate within 10 days on receipt of the demand