SENATOR ABIRU DRIVES OVERHAUL OF NDIC ACT: BILL ADVANCES TO COMMITTEE REVIEW ®™√ INN Nigeria ©

In a noteworthy Senate session today, Senator Mukhail Adetokunbo Abiru, FCA (Lagos East), spearheaded discussions on a pivotal bill geared towards a comprehensive overhaul of the Nigeria Deposit Insurance Corporation Act No 63 of 2023.

The proposed amendments aim to enhance the Corporation’s effectiveness, safeguard its independence, and align it with contemporary standards.

Senator Abiru, the bill’s sponsor, underscored the urgency of addressing ongoing debates and concerns raised by stakeholders regarding the 2023 Act.

Key amendments include ensuring genuine independence for the Corporation, reevaluating the appointment process for critical positions, and reintroducing geo-political representation on the Board.

During his Senate floor address, Senator Abiru emphasized, “The bill is amending the principal Act to ensure NDIC’s independence in performing its statutory functions, eliminating contradictions in its current framework.”

Notable modifications in the bill focus on refining the President’s authority in appointing the Managing Director and Executive Directors, aligning it with constitutional provisions.

Moreover, the bill seeks to reinstate geo-political representation on the Board, highlighting the significance of diversity and inclusivity.

Senator Abiru also advocated for a reconsideration of appointing the Permanent Secretary, Ministry of Finance, as the Chairman of the Board, citing the demanding nature of the role.

Addressing concerns about the Securities and Exchange Commission’s role, Senator Abiru noted, “The reasoning for the Director-General of SEC being a member of the Board and the Interim Management Committee is also being addressed, ensuring relevance to deposit insurance.”

After successfully passing the second reading, the bill is now poised for in-depth examination by the Committee on Banking, Insurance, and other Financial Institutions, with an anticipated report within two weeks.

This marks a crucial stride towards potential reforms in the governance and functionality of the Nigeria Deposit Insurance Corporation.