The Nigerian Senate has passed a bill that strips the Central Bank of Nigeria (CBN) of its power to appoint the CEO and board members of the Nigerian Deposit Insurance Corporation (NDIC).
This decision was made after a rigorous debate on Tuesday, following a report submitted by Senator Mukhail Adetokunbo Abiru, Chairman of the Senate Committee on Banking, Insurance, and Other Financial Institutions.
The amendment to the Bank Deposit Regulator’s Principal Act consolidates the power of the President to appoint the Chairman and members of the NDIC board, while the CBN will focus on supervising the corporation. This change aims to strengthen the NDIC’s capacity to safeguard depositors, ensure financial institutions’ stability, and promote trust in the banking system.
According to Senator Abiru, the NDIC will now enjoy autonomy and independence, aligning with global best practices. The amendment addresses concerns raised by stakeholders and updates the 2006 Act to tackle evolving challenges in the banking environment.
The bill, titled “Nigeria Deposit Insurance Corporation Act No 33 of 2023,” was sponsored by Senator Abiru and the Senate Committee on Banking, Insurance, and Other Financial Institutions.
The passage of this bill demonstrates the Senate’s commitment to enhancing the NDIC’s effectiveness in protecting depositors’ interests and promoting financial sector confidence.
The Nigerian Deposit Insurance Corporation has been working to ensure the stability of the financial sector, providing deposit insurance coverage to depositors of insured financial institutions.
