The Senate recently passed a bill in its third and final reading to strengthen the Nigeria Deposit Insurance Corporation (NDIC) in its role of protecting depositors, ensuring financial institution stability, and building trust in the banking system. The legislation, known as the Nigeria Deposit Insurance Corporation Act No 33 of 2023, was introduced by Senator Adetokunbo Abiru and the Senate Committee on Banking, Insurance, and Other Financial Institutions.
The bill aims to enhance the effectiveness of the NDIC, secure its independence, and align it with current industry standards. Key changes include granting the President the authority to appoint the Chairman and board members of the NDIC, with the Central Bank of Nigeria focusing on supervision rather than appointments. The amendment also emphasizes the NDIC’s role in examining banks to ensure their soundness.
Senator Abiru highlighted the importance of the bill in strengthening Nigeria’s financial system by safeguarding depositors, ensuring financial stability, and building confidence in the banking sector. The proposed amendments address stakeholder concerns and aim to keep the NDIC relevant in a rapidly evolving financial landscape.
The bill received widespread support from stakeholders, with over 30 written memoranda and numerous oral submissions endorsing its provisions. Overall, the amendments are intended to empower the NDIC, uphold its independence, and align it with best practices to better serve depositors and maintain financial system stability.