The Senate on Tuesday at plenary passed a bill to strengthen the capacity of the Nigeria Deposit Insurance Corporation (NDIC) to safeguard depositors’ fund and strengthen financial institutions in Nigeria.
This followed adoption of report of the Senate Committee on Banking, Insurance and Other Financial Institutions on the bill titled, “Nigeria Deposit Insurance Corporation Act 2023″
The bill was sponsored by Sen. Adetokunbo Abiru (APC-Lagos) and all the members of the Committee.
Abiru while presenting the report said the bill would make the NDIC, more effective, safeguard its independence, autonomy and bring it in line with current realities and best practices.
He said the bill consolidates the power of the President to appoint the Chairman and members of the board of the NDIC while the Central Bank of Nigeria (CBN) which hitherto recommends the appointees, would now concentrate on supervising the corporation.
According to him, the NDIC based on the new act will focus on the examination of the banks.
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.”
He said, “to further empower the corporation by guaranteeing its independence in performing its statutory functions in line with Section 1 (3) of the principal Act.
(PR Nigeria)
