.Senate okays NDIC Bill to protect bank depositors
The Senate was unable to screen the seven ministerial nominees forwarded to it last week by President Bola Tinubu due mainly to the non-completion of documentation by some nominees.
So, it postponed the screening till today.
In a significant move to bolster the Nigerian financial system, the Red Chamber, yesterday, passed the Nigeria Deposit Insurance Corporation (NDIC) Bill No. 33 of 2023.
Giving reasons for the postponement in a statement, Special Adviser to the President on Senate Matters, Sen Basheer Lado, indicated that the postponement was to allow the nominees to conclude all aspects of documentation and pre-screening processes.
“The screening has been rescheduled for Wednesday, October 30,” he said.
The seven nominees forwarded to the Senate for confirmation by President Bola Tinubu include Dr NentaweYilwatda (Humanitarian Affairs and Poverty Reduction), Muhammadu Dingyadi (Labour and Employment) and Bianca Odumegwu-Ojukwu (State, Foreign Affairs).
Others are Dr Jumoke Oduwole (Industry, Trade and Development), Idi Maiha (Livestock Development), Yusuf Ata (State, Housing) and Dr Suwaiba Ahmad (State, Education).
The NDIC legislation aims to strengthen the corporation’s ability to protect depositors, ensure the stability of financial institutions and enhance public trust in the banking system.
Sponsored by Sen Adetokunbo Abiru (APC, Lagos East) and supported by the Senate Committee on Banking, Insurance, and Other Financial Institutions, the bill underwent thorough discussion before its third and final reading.
During the plenary, Abiru presented the committee’s report, highlighting that the bill would empower the NDIC by safeguarding its independence and aligning its operations with contemporary practices.
Key amendments include consolidating the President’s authority to constitute the NDIC board and transitioning the Central Bank of Nigeria (CBN) to a supervisory role rather than a recommending one. This shift will enhance the NDIC’s focus on bank examinations and overall regulatory efficiency.
Abiru noted that while the 2023 Act improved upon the 2006 legislation, its implementation faced challenges and calls for further amendments.
“The proposed amendments are crucial for strengthening Nigeria’s financial system,” he stated. “They respond to both the challenges and opportunities in the rapidly evolving financial landscape.”
The bill addresses concerns raised about the independence of the NDIC, particularly regarding the appointment of the Managing Director and Executive Directors. The 2024 amendments seek to clarify the President’s constitutional authority in these appointments, removing any ambiguities in the principal Act.
Additionally, the bill includes provisions for the Minister of Finance to establish an Interim Management Committee (IMC) within 30 days following the end of a board’s tenure, preventing operational disruptions faced previously by the NDIC.
Emphasising the broad consensus among stakeholders about the critical role of NDIC in protecting depositors and ensuring financial stability, Abiru said over 30 written memoranda and numerous oral submissions supported the bill, reflecting widespread backing for the proposed reforms.
