The Senate, during its plenary session on Tuesday, passed the Nigeria Deposit Insurance Corporation (NDIC) Act 2023, a bill designed to enhance the NDIC’s capacity to protect depositors’ funds and bolster financial stability in Nigeria.
The legislation, sponsored by Senator Adetokunbo Abiru (APC-Lagos) and the Senate Committee on Banking, Insurance, and Other Financial Institutions, aims to make the NDIC more effective, autonomous, and aligned with global best practices.
Presenting the committee’s report, Senator Abiru explained that the bill clarifies the President’s authority to appoint the NDIC’s Chairman and board members, a role previously influenced by recommendations from the Central Bank of Nigeria (CBN), which will now focus on supervising the corporation.
The new amendments will also empower the NDIC to conduct bank examinations, thereby enhancing its role in safeguarding the stability of financial institutions and public trust in the banking system.
The bill revises the 2023 Act by removing the Permanent Secretary of the Ministry of Finance as Chairman of the NDIC Board, addressing the office’s extensive responsibilities that often preclude such appointments.
Additionally, the new legislation mandates the Minister of Finance to establish an Interim Management Committee within 30 days should the NDIC Board become vacant, thereby preventing operational challenges.
Senator Abiru noted that stakeholders widely support the NDIC’s critical role in protecting depositors and ensuring financial system stability.
He emphasized the need for a modernized legal framework that keeps pace with the evolving banking landscape, particularly given the NDIC’s essential function in upholding confidence in the financial sector.