Senate on Tuesday passed a bill that changes the Nigeria Deposit Insurance Corporation, NDIC Act No. 33 of 2023, to improve the corporation’s ability to protect depositors’ cash, secure the security of financial institutions, and foster trust in the banking sector.
This came after the Committee on Banking, Insurance, and Other Financial Institutions, led by Senator Adetokunbo Abiru (APC, Lagos East), reviewed its findings in plenary.
Senator Abiru, who presented the report, stated that the measure will also increase the NDIC’s effectiveness, protect its independence and autonomy, and bring it up to date with contemporary realities and best practices.
According to him, the law solidified the President’s authority to choose the chairman and board members of the NDIC, while the Central Bank of Nigeria, CBN, which previously suggested candidates, would now focus on overseeing the company.
He stated that the NDIC will focus on bank examinations under the latest modification to its legislation.
Senator Abiru explained that, while the 2023 Act made significant improvements to the 2006 Act, its implementation has been fraught with ongoing debates, and there have been several appeals from and consensus among stakeholders on the need for an amendment to the Act to address all of the issues raised.
He said:
“The Nigerian Deposit Insurance Corporation (Amendment) Bill, 2024, is thus a critical piece of legislation aimed at strengthening the Nigerian financial system.
“The proposed amendments will enhance the NDIC’s capacity to safeguard depositors, ensure the stability of financial institutions, and promote trust in the banking system.
“Given the rapidly evolving nature of the financial sector, this bill represents a timely response to the challenges and opportunities that lie ahead.”
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cc: Daily Post Ng
