In a bid to enhance the effectiveness and autonomy of the Nigeria Deposit Insurance Corporation (NDIC), kakalistiq.com reports that Senator Mukhail Adetokunbo Abiru, representing Lagos East and serving as Chairman of the Senate Committee on Banking, Insurance, and other Financial Institutions, today led the debate on a crucial bill for an Act to amend the NDIC Act No. 63 of 2023.
The proposed amendments, co-sponsored by 42 Senators from Senator Abiru’s committee, seek to address the shortcomings of the 2023 Act and align the NDIC with current realities and international best practices. Senator Abiru emphasized the necessity of the amendments, citing ongoing debates and stakeholder appeals for reform.
Key amendments outlined in the bill include ensuring true independence for the NDIC in line with its statutory functions, addressing contradictions within the Act, and restricting the President’s power to appoint the Managing Director and Executive Directors. Additionally, the bill aims to reintroduce geo-political representation on the NDIC Board, amend the appointment of the Board Chairman, and review the inclusion of the Director-General of the Securities and Exchange Commission on the Board and Interim Management Committee.
Senator Abiru highlighted the importance of these amendments in promoting inclusivity, effective oversight, and preventing operational challenges faced by the NDIC. He stressed the need for the timely constitution of an interim management committee by the Minister of Finance to ensure continuity in the corporation’s operations.
“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 appointments 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,” he said.
Following the debate, the bill received its second reading and was referred to the Committee on Banking, Insurance, and Other Financial Institutions for further review. The Committee is expected to report back within two weeks, signaling the Senate’s commitment to expediting the legislative process and strengthening the regulatory framework governing Nigeria’s financial sector
