Thompson Sunday Leads NDIC Into New Era as USSD Banking Wanes, Stakeholders Watch Closely

Mr. Thompson Oludare Sunday, a seasoned financial expert and former Central Bank of Nigeria (CBN) official, has officially assumed the role of Managing Director of the Nigerian Deposit Insurance Corporation (NDIC). His appointment comes at a crucial time for Nigeria’s financial services sector, which is grappling with emerging risks and shifting technological trends.

Sunday’s entry into office follows Senate confirmation last week, positioning him to steer the NDIC through a fast-changing financial landscape. A key challenge awaiting his leadership is the sector’s recent retreat from USSD banking technology—an innovation banks once championed as a catalyst for financial inclusion but have now scaled back, citing high operational costs and strained partnerships with telecom operators.

Flashback: The Rise and Retreat of USSD Banking

The Unstructured Supplementary Service Data (USSD) platform was widely celebrated when Nigerian banks, in collaboration with fintech companies and telcos, rolled it out to reach millions of financially excluded Nigerians. Designed as a low-cost, mobile-based banking solution, the technology enabled users to perform basic transactions without internet access.

However, in recent months, industry enthusiasm has cooled. Disputes over transaction fees between banks and telecom operators, coupled with the banks’ increasing focus on app-based solutions, have eroded the once-promising service. Many financial institutions are now quietly de-emphasizing USSD, leaving fintech innovators and rural users in limbo.

Fresh Expectations for NDIC Under Sunday’s Leadership

Mr. Sunday’s appointment comes as stakeholders call for stronger financial safety nets amid these sectoral shifts. Observers expect his leadership to focus on the following areas:

• Enhanced Deposit Protection: The NDIC’s primary role of protecting depositors—especially vulnerable small savers—is expected to take center stage, as trust in digital financial services wavers.
• Policy Harmonization: Industry players anticipate closer collaboration between the NDIC, CBN, Nigerian Communications Commission (NCC), and other regulators to resolve policy conflicts such as the USSD fee impasse.
• Proactive Risk Management: With his background in risk oversight, Sunday is likely to drive a more proactive approach to identifying and stabilizing troubled banks and fintech platforms before crises erupt.
• Restoring Public Confidence: Rebuilding public trust in the financial system’s resilience is expected to be a major focus, particularly as economic volatility continues to test consumer confidence.
• Technology-Enabled Supervision: Analysts predict an increased focus on leveraging data analytics and digital tools to strengthen the NDIC’s monitoring and intervention capabilities.

Looking Ahead

Mr. Sunday assumes office at a time when the Nigerian financial services sector faces a crossroads: either re-energize its digital transformation journey or retreat into conservative, risk-averse operations.

His leadership at the NDIC will be closely watched by the banking community, fintech startups, and millions of Nigerian depositors who rely on a stable, secure financial ecosystem.

For now, all eyes are on his first policy statements and the direction he will chart for the corporation and the wider financial industry.

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