Pending final amendment operations of the National Deposit Insurance Corporation, NDIC will no longer be subjected to the approval of the Central Bank of Nigeria , CBN following the second reading of a bill sponsored by Senator Tokunbo Abiru.



Another objective of the bill also seeks to grant powers to the President to appoint the Managing Director and Executive Directors of the Corporation instead of the CBN Governor.



The bill pointed out that whereas Section 1 (3) of the Act provides that ‘’The Corporation shall be independent in the performance of its functions’, nearly all of its important and exclusive duties, functions and powers are to be exercised subject to the concurrence of the Central Bank of Nigeria (CBN).



The bill Titled ; “A bill to Amend the Nigeria Deposit Insurance Corporation Act No 63 of 2023 to make the Corporation more effective, ensure its independence and Autonomy in line with section 1 (3) of the Principal Act, bring it in line with current realities and best practices and for other related matters received the support of the Lawmakers.



During Thursday’s plenary the bill fronted by the Senate Banking committee Chair and 41 other members of his committee told his colleagues that the bill also aims to reintroduce the geo-political representation on the Board of the Corporation which was expunged in the amended 2023 NDIC Act



Abiru, leading the debate on the bill argued that the importance of the duties and functions of the corporation alongside the need for inclusivity taking into cognizance the diversity of the nation requires that geo political representation in the board is restored.



“In addition to harnessing the diversity of the nation and engendering inclusivity, the geo-political spread also helps with the dissemination of information of the activities of the Corporation”, Abiru explained.



The Lagos-East Lawmaker drew the attention of the Senate to the fact that though the 2023 NDIC Act was passed by the 9th Senate and signed into law by former President Buhari, there are however still complaints that the document/bill that was assented to by the former President is materially different from what was passed by the 9th National Assembly.



Abiru highlited other objectives of the bill; “The provisions of the principal Act which makes the Permanent Secretary, Ministry of Finance the Chairman of the Board is also being reviewed. This is because the workload and busy schedule of that office is such that makes such appointment untenable. This may not engender effective oversight of the affairs of Corporation as is required for an organization that plays such an important role in the financial services sector.



“In the same vein, the reasoning for the Director-General of the Securities and Exchange Commission being a member of the Board and the Interim Management Committee is also being addressed. This is as SEC is the regulator of the capital market and has nothing to do with deposit insurance.



“The importance of the need for the Minister of Finance to constitute an Interim Management Committee for the Corporation within 30 days after the expiration or termination of the tenure of the Board is also introduced in the bill. This is to forestall a recurrence of the recent situation where the Corporation faced challenges in its operations as a result of the absence of a board.

In conclusion Abiru urged the Senate to pass the bill saying that it will correct the anomalies that have been highlighted above, strengthen the Corporation to make it more effective and safeguard its independence and autonomy to bring it in line with current realities and best practices.



In support of the bill Senator Sani Musa (Niger East) described the bill as impactful and straight forward. He said ; “I think this bill as Mr President is very straight forward bill . The idea is to improve the functionality of the NDIC and also the independence.

“When it comes to appointments it’s only fair to give Mr. president to appoint, instead of CBN if they should haveb any issues with any bank the CBN is also there.

The bill also received the support of Plateau South Senator, Simon Lalon he said;; “I support that this Bill should be given accelerated approval. In the last two years we had problems as a result of these anomalies and that it will go long way to correct the anomalies and will go a long way to correct the anomalies in that institution. It is only right for the President to appoint at this time.

Following his debate, Deputy President of the Senate Barau Jibrin directed the bill to the banking committee for further legislation and revert to the senate within two weeks after it was passed via voice votes of the Senators.


https://sunnewsonline.com/abirus-bill-to-make-ndic-independent-productive-passes-2nd-reading/?amp