The bill seeks to amend the Nigeria Deposit Insurance Corporation Act No 63 of 2023 to make the Corporation more effective, safeguard its independence and autonomy and bring it in line with current realities and best practices.
The Senate has passed for second reading, a bill seeking to guarantee the autonomy and independence of the Nigeria Deposit Insurance Corporation (NDIC).
This followed the presentation of the lead debate on the general principles of the bill titled “A Bill for an Act to Amend the Nigeria Deposit Insurance Corporation (NDIC) 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 and for other related matters,’’ sponsored by Senator Adetokunbo Abiru (APC Lagos East) and co-sponsored by 41 other senators during Thursday’s plenary.
Leading the debate, Abiru who chairs the Senate Committee on Banking, Insurance and other Financial Institutions said the NDIC was set up for the protection of depositors and to guarantee the settlement of insured funds when a deposit-taking financial institution could no longer repay their deposits.
“Though the 2023 Act made substantial improvements to the 2006 Act, its implementation has been fraught with continuous debates.
“And there have been a series of appeals from and consensus among stakeholders on the need for an amendment of the Act to address all the issues that have been raised concerning it,” he argued.
Abiru said the objectives of the Bill included dispelling the speculations that the document/Bill that was assented to by former President Muhammadu Buhari was materially different from what was passed by the 9th National Assembly.
He said, “This bill which is co-sponsored by all the 42 members of the Senate Committee on Banking, Insurance and other financial institutions was read the first time in this hallowed chamber on Wednesday 22nd November, 2023.
“The bill basically seeks to amend the Nigeria Deposit Insurance Corporation Act No 63 of 2023 to make the Corporation more effective, safeguard its independence and autonomy and bring it in line with current realities and best practices.”
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According to him, the main purposes of the NDIC’s establishment were to safeguard depositors and ensure the payment of insured funds if a financial institution that accepts deposits is unable to repay its customers.
“Though the 2023 Act made substantial improvements to the 2006 Act, its implementation has been fraught with continuous debates and there have been a series of appeals from and consensus among stakeholders on the need for an amendment of the Act to address all the issues that have been raised concerning it.
“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 above provisions make the Act self-contradictory and this bill is therefore amending the principal Act to guarantee NDIC’s independence in performing its statutory functions.”
Deputy Senate President Jibrin Barau, who presided over the plenary, stated that the Bill would further strengthen the NDIC to enable it to carry out its statutory duties as effectively as possible.
The Senate Committee on Banking, Insurance, and Other Financial Institutions was then tasked with taking further legislative action on the bill and reporting back in two weeks.
