The Nigerian Senate on Tuesday passed a bill amending the Bank Deposit Regulator’s Principal Act, removing the Central Bank of Nigeria’s (CBN) authority to appoint the Chief Executive Officer (CEO) of the Nigerian Deposit Insurance Corporation (NDIC).
The amendment followed a report presented by Senator Mukhail Adetokunbo Abiru, Chairman of the Senate Committee on Banking, Insurance, and Other Financial Institutions. After extensive debate, the bill passed its third reading, consolidating the President’s power to appoint the NDIC’s Chairman and board members. The CBN, which previously recommended appointees, will now focus solely on supervising the corporation.
Senator Abiru explained that the amendment aims to grant the NDIC full autonomy and align it with global best practices. “This amendment strengthens the corporation’s capacity to safeguard depositors, promote financial stability, and enhance trust in the banking sector,” he said.
The new legislation, titled “Nigeria Deposit Insurance Corporation Act No. 33 of 2023,” was sponsored by Senator Abiru and other members of the Senate Committee. It seeks to address long-standing concerns about the NDIC’s independence and effectiveness.
“The evolving challenges in global and domestic banking environments make it essential to review the legal framework to keep the NDIC fit for purpose,” Abiru noted, adding that the amendment will improve the corporation’s ability to monitor banks and respond to financial risks.
Senate President Godswill Obot Akpabio presided over the session, during which the bill was passed into law.
