In a significant legislative move, the Senate approved on Thursday the second reading of a bill aimed at amending the Nigeria Deposit Insurance Corporation (NDIC) Act.
Spearheaded by Senator Adetokunbo Abiru, the Chairman of the Senate Committee on Banking, Insurance, and Other Financial Institutions, the bill seeks to enhance the effectiveness of the corporation, ensuring its independence and autonomy in alignment with contemporary needs.
Senator Abiru, during the bill’s debate, emphasized the necessity of addressing issues raised by stakeholders.
He highlighted a key proposal empowering the President to directly appoint critical positions, deviating from the current Act that relies on recommendations from the Governor of the Central Bank of Nigeria.
“This bill, co-sponsored by all 42 members of the Senate Committee on Banking, Insurance, and other financial institutions, was introduced on November 22, 2023. Its primary goal is to modernize the NDIC, fortify its autonomy, and align it with current best practices,” Senator Abiru stated.
Among the amendments proposed, Senator Abiru emphasized the reinstatement of geographical representation on the board for inclusivity.
He argued that restoring diversity in board membership enhances the dissemination of information about the corporation’s activities.
The bill also addresses concerns about the workload of government functionaries by reviewing the provision making the Permanent Secretary, Ministry of Finance, the Chairman of the Board. Additionally, it reevaluates the inclusion of the Director-General of the Securities and Exchange Commission on the board and the Interim Management Committee.
Senator Abiru outlined the need for the Minister of Finance to constitute an Interim Management Committee within 30 days after the Board’s tenure expiration or termination.
This measure aims to prevent operational challenges faced by the NDIC in the absence of a board, a situation recently encountered.
Senator Abiru stressed that the bill, if passed into law, would rectify highlighted anomalies, strengthen the corporation, and align it with contemporary best practices. Following exhaustive debate, the Senate successfully passed the bill for a second reading.
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