NDIC amendment bill scales second reading in Senate

An Amendment Bill seeking to guarantee the autonomy and independence of the Nigeria Deposit Insurance Corporation (NDIC) scaled second reading in the Senate on Thursday.

The sponsor of the bill, Senator Mukhail Adetokunbo Abiru, APC, Lagos East, said the proposed amendment is in line with Section 1 (3) of the principal Act, 2006.

Speaking on the general principles of the bill on the floor of the Senate on Thursday, the lawmaker argued that the provisions of the Act are inadequate.

According to him, the envisaged amendment would make the Corporation more effective in the discharge of its mandates.

He said: “This bill which is co-sponsored by all the 42 members of the Senate Committee on Banking, Insurance and other financial institutions was read the first time in this hallowed chamber on Wednesday 22nd November, 2023.

“The bill basically seeks to amend the Nigeria Deposit Insurance Corporation Act No 63 of 2023 to make the Corporation more effective, safeguard its independence and autonomy and to bring it in line with current realities and best practices.”

Abiru said the NDIC was set up primarily to protect depositors and to guarantee the settlement of insured funds when a deposit-taking financial institution can no longer repay their deposits.

“Though the 2023 Act made substantial improvements to the 2006 Act, its implementation has been fraught with continuous debates and there have been series of appeals from and consensus among stakeholders on the need for an amendment of the Act to address all the issues that have been raised concerning it.

“Whereas Section 1 (3) of the Act provides that ‘’The Corporation shall be independent in the performance of its functions” nearly all of its important and exclusive duties, functions and powers are to be exercised subject to the concurrence of the Central Bank of Nigeria (CBN).

“The above provisions make the Act self-contradictory and this bill is therefore amending the principal Act to guarantee NDIC’s independence in performing its statutory functions.”

Other Senators contributed in favour of the proposed amendment, noting that the amendment will prevent interference in the functions of the NDIC.