Senate passes bill to protect depositors’ funds in banks
The Senate on Tuesday passed for third reading a bill to strengthen the Nigeria Deposit Insurance Corporation (NDIC) to safeguard depositors, ensure the stability of financial institutions and promote trust in the banking system. The bill titled, “NDIC Act No 33 of 2023,” was sponsored by Senator Mukhail Adetokunbo Abiru (Lagos East) and all the […]
senate
The Senate on Tuesday passed for third reading a bill to strengthen the Nigeria Deposit Insurance Corporation (NDIC) to safeguard depositors, ensure the stability of financial institutions and promote trust in the banking system.
The bill titled, “NDIC Act No 33 of 2023,” was sponsored by Senator Mukhail Adetokunbo Abiru (Lagos East) and all the members of the Senate Committee on Banking, Insurance and other Financial Institutions.
It was passed after a consideration and adoption of the committee’s report presented by Senator Abiru during plenary.
The bill gives the President the power 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.
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Abiru said the bill if assented to by President Bola Ahmed Tinubu would also make the NDIC, more effective and safeguard its independence.
He noted that despite the fact that the NDIC 2023 Act made substantial improvements from the 2006 Act, its implementation had been fraught with continuous debates.
The lawmaker said stakeholders had consistently been engaging in series of appeals on the need for an amendment of the Act to address all the issues that have been raised concerning it.
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.”