The Nigerian Senate has passed a bill aimed at strengthening the Nigerian Deposit Insurance Corporation (NDIC), safeguarding depositors’ funds, and promoting financial stability. The new legislation, titled the Nigeria Deposit Insurance Corporation Act No. 33 of 2023, removes the Central Bank of Nigeria’s (CBN) authority to appoint the NDIC’s CEO. Instead, the President now holds exclusive power to appoint the chairman and board members, while the CBN will focus on supervising the NDIC.
Sponsored by Senator Mukhail Adetokunbo Abiru, the bill is seen as a critical step towards reinforcing the NDIC’s autonomy and aligning it with international best practices. Abiru explained that the bill was essential to address longstanding concerns and establish a more independent and effective deposit insurance framework in Nigeria. The amendments were driven by feedback from stakeholders who underscored the need for a stronger legal framework, especially given the evolving global financial environment.
The new law also requires the Minister of Finance to form an interim management committee within 30 days if the NDIC board’s tenure expires or is terminated, ensuring continuity in governance. The Senate President, Godswill Akpabio, presided over the bill’s passage, which received unanimous support as a vital measure to protect depositors and bolster confidence in the Nigerian banking system.
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