The Nigerian Senate has passed the “Nigeria Deposit Insurance Corporation Act No 33 of 2023,” a bill aimed at bolstering the Nigeria Deposit Insurance Corporation (NDIC) to better protect depositors, enhance financial stability, and build trust in the banking sector. The bill, sponsored by Senator Adetokunbo Abiru (APC, Lagos East) alongside the Senate Committee on Banking, Insurance, and Other Financial Institutions, was approved for its third and final reading on Tuesday.
In presenting the bill, Abiru emphasized its goal to improve the NDIC’s independence, efficiency, and alignment with modern financial practices. Key provisions empower the President to appoint the NDIC’s board members, with the Central Bank of Nigeria (CBN) concentrating on supervision rather than influencing appointments.
The amendments provide the NDIC with enhanced authority to conduct bank examinations, resolving long-standing debates over the agency’s powers. Notably, the bill introduces measures to establish an interim management committee within 30 days if the board is without leadership, addressing operational challenges from previous board vacancies.
“The proposed amendments will enable the NDIC to safeguard depositors, stabilize financial institutions, and foster trust in Nigeria’s financial system,” stated Abiru, highlighting the bill as a timely response to the financial sector’s evolving needs.
With these updates, the Senate seeks to reinforce the NDIC’s role and align the agency’s mandate with Nigeria’s Constitution, addressing concerns from stakeholders over previous inconsistencies in NDIC legislation.
