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Senate Passes NDIC Bill To Safeguard Bank Depositors’ Funds, Stabilise Financial Institution.

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  • Senate Passes NDIC Bill To Safeguard Bank Depositors’ Funds, Stabilise Financial Institution.
In a bid to protect the interest of Bank  Depositors, the Senate on Tuesday at plenary passed for third and final reading, a bill meant to strengthen the capacity of the Nigeria Deposit Insurance Corporation’s capacity to safeguard depositors, ensure the stability of financial institutions, and promote trust in the banking system.
The legislation, titled, “Nigeria Deposit Insurance Corporation 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.
 Abiru presented the report of the  panel at plenary on Tuesday.
H said the bill would also make the NDIC, more effective, safeguard its independence and autonomy and  bring it in line with current realities and best practices.
The Bill consolidated the power of the President to appoint the Chairman and members of the board of the NDIC while the Central Bank  of Nigeria (CBN) which hitherto recommend to the appointees, would now concentrate on supervising  the corporation.
The NDIC based on the new amendment of its Act, would focus on the examination of the banks.
He noted that despite the fact that the NDIC 2023 Act made substantial improvements to the 2006 Act, its implementation had been fraught with continuous debates.
He specifically 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.
“Given the rapidly evolving nature of the financial sector, this Bill represents a timely response to the challenges and opportunities that lie ahead.”
Abiru added that the current Bill would lay to rest once and for all, the claims that the bill that was assented to by the former President Muhammadu Buhari, was materially different from what was passed by the 9th National Assembly.
He said, “To further empower the corporation by guaranteeing its independence in performing its statutory functions in line with Section 1 (3) of the principal Act.
“The principal (2023) Act curiously restricts the President’s power to appoint the Managing Director and Executive Directors and provides that they are to be to persons recommended by the Central Bank of Nigeria Governor.
“The (2024) bill (now)  seeks to amend this provision to bring it in line with and in consonance with Mr. President’s power of appointment as enshrined in the Constitution of the Federal Republic of Nigeria 1999 (as amended).
“The provisions of the principal Act which makes the Permanent Secretary, Ministry of Finance the Chairman of the Board is also being reviewed.
“This is because the workload and busy schedule of that office is such that makes such appointment untenable.
“The importance of the need for the Minister of Finance to constitute an Interim Management Committee for the Corporation within 30 days after the expiration or termination of the tenure of the Board is also introduced in the bill.
Fielding questions from Journalists, Senator Abiru said,“This is to forestall the recent situation where the Corporation faces challenges in its operations as a result of the absence of a board.”
Abiru said  there was a general agreement among stakeholders of the importance of the NDIC  as it was set up for the purpose of the protection of depositors and to guarantee the settlement of insured funds when a deposit-taking financial institution can no longer repay their deposits, thereby helping to maintain financial system stability.
He said, “Considering the above therefore, the general consensus among stakeholders was that it is important that the legal framework is reviewed.
“This is to make the Corporation more effective to discharge its functions, safeguard its independence and autonomy and to bring it in line with current realities and best practices.
“This is particularly because the Corporation plays a vital role in safeguarding the interests of depositors and promoting confidence in the financial sector.
“The evolving challenges in the global and domestic banking environments necessitate the amendment of the current law to keep paceb with these developments and ensure the NDIC remains fit for purpose.”
Abiru said over 30 written memoranda and numerous oral submissions were received. All the written memoranda and oral presentations at the hearing supported the bill.

General News

Chamber of Commerce, NDDC release N1.5 bn to boost businesses in Niger Delta

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NDDC Managing Director, Dr Samuel Ogbuku

 

By Magnus Chukwudi Port Harcourt

 

The Niger Delta Chamber of Commerce, Industry, Trade, Mines and Agriculture, NDCCITMA, backed by the Niger Delta Development Commission, NDDC, has released cheques worth N1.5 billion to 1,500 people to boost businesses in the Niger Delta region.

 

Speaking during the flag off of anInvestments Partnership Scheme in Port Harcourt, the Chairman of NDCCITMA, Ambassador Idaere Gogo-Ogan, said the fund represents the first phase of disbursement to empower beneficiaries in the region.

 

He noted that the nano group of beneficiaries, the poorest of the poor, would receive 200,000 naira each, while the micro, small-scale and medium-scale categories of the scheme would receive N3 million, N7 million, and N20 million, respectively, to boost their investments.

 

He stated: ” Our core mandate is to strive to reduce poverty in the region. We are optimistic that our partnership with a strong institution like NDDC will enable us to reach the poorest of the poor, small-scale businesses, and lift over 2,000 people in the region out of poverty.

 

We believe that robust development comes not only from the top but also from the bottom. So, when you aggregate all the categories, you can begin to see the gains of genuine economic prosperity.”

 

Gogo-Ogan added that the beneficiaries will have the advantage of paying a low interest rate of 0.6 per cent, noting that it would enable the Chambers to reach out to more people in the region.

 

He assured the beneficiaries of the investment scheme that the Chambers of Commerce would adopt a mentorship approach, providing financial support and promotions to their businesses to enable them to compete favourably with other regions in the country.

 

Also speaking at the occasion, the NDDC Director of Commercial and Industrial Development and Chairman of the Implementation Committee, Mrs. Lyna Okara, commended the leadership of the NDDC for establishing a body that would bring together those with the vision to grow businesses.

 

She maintained that the flag-off of the investment partnership scheme was timely and an indication that the region was on the path of rapid development. She enjoined the people of the Niger Delta region to take advantage of the scheme to develop and enlarge their businesses.

 

A Representative of the Small and Medium Scale Enterprises, SMEDAN, Mrs. Olalek Rasheed, urged entrepreneurs to ensure proper documentation to enable them to access the funds. She also advised against diverting the funds to other non-economic activities. ###.

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Somtochukwu; Family thanks Nigeria for support

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Family members of Miss Somtochukwu Maduagwu

By Magnus Chukwudi, Port Harcourt

The family of Arise tv presenter late Miss Somtochukwu Maduagwu, has appreciated the people of Nigeria, for encouragement and consolation, as they mourned their daughter.

The immediate senior brother to the deseased Mr Maduagwu, so greeted, at Corpus Christi Cathederal, Port Harcourt, yesterday, during the requim mass.

Maduagwu admitted that the loss of his sister is a big blow to the family, but they had taken solace in the Almighty God, using the opportunity too, to urge the parents to accept their daughter’s sudden death, as the will of God.

The officiating Priest Very Rev fr Martin Amadi and the other Rev Nwakor in the gospel preachings, affirmed that what makes the believer is what he/she should be remembered for.

They described the late Somtochukwu as a good, great and strong believer and woman of faith, assuring she is resting in the Lord.

A staff of Arise, on behalf of the media firm, vouched that the very time, she worked with them, was very fruitful, and prayed God, to grant her eternal rest in His bosom.

Diginitries from various walks of life graced the occasion.

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General News

RECRUITMENT POLICY: Gov Diri Urges Immigration, other Federal Agencies To Give Bayelsa Special Consideration

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Assistant Comptroller General of the Nigerian Immigration Service, Zone G, Mrs Abolupe Oladoyin Bewaji(right) to deputygovernorofBayelsaState, SenatorLawrenceEwhrudjakpo flanked by officials of NIS

By David Owei,Bayelsa
Bayelsa State Governor, Senator Douye Diri, has urged the Nigerian Immigration Service (NIS) and other federal agencies to recalibrate their recruitment policies to promote fairness, justice and equity in line with the principles of federalism.

Governor Diri, stated this when the Assistant Comptroller General of the Nigerian Immigration Service, Zone G, Mrs Abolupe Oladoyin Bewaji, paid a courtesy visit to Government House, Yenagoa, on Monday.

The Governor who was represented by his deputy, Senator Lawrence Ewhrudjakpo, decried the subsisting practice where job recruitment at the federal level is based on the number of local government areas in each of the 36 states in the country, including the Federal Capital Territory (FCT), Abuja.

He lamented that Bayelsa has always been short-changed whenever employment slots were allocated across the various states of the federation as it has only eight local government areas, which is the fewest in the country.

Describing the policy as unjust, undemocratic and skewed against the foremost oil and gas producing state, Governor Diri stressed the need for federal government to urgently address the anomaly with a view to giving Bayelsa a befitting sense of belonging.

He also called on the Nigeria Immigration Service to make Bayelsa a center for the printing of passports to save the manhours and other resources currently expended for producing the document outside the state.

The Bayelsa helmsman who commended the Minister of Interior and the Comptroller General of Immigration for some of the ongoing innovations and reforms in the Service in recent years, he pledged his administration’s preparedness to collaborate with the NIS to achieve set goals.

His words: “First of all, I like to commend the Minister of Interior as well as the Comptroller General of Immigration for the innovations and reforms which we are now seeing, especially in the area of issuing of visas and passports and diplomatic reciprocity.

“Clearly, we can see that you are doing fairly well on the land. But I think you need to do much more on the waterways because a lot of people are also coming into the country through the waterways..

“As a state, we are willing and ready to collaborate with you to carry out effective services in the state. We will be happy to support you provide the marine unit of immigration.

“Let me also use this opportunity to raise some of our concerns. First, we want you to urgently address the issue of printing passports outside our state. We want the production of the passports to be done here to reduce the manhour and other costs.

“We are also concerned about the way job recruitment is being done in the Immigration and other federal agencies. We are being short-changed because most of the time it is done based on the number of local government areas in the states.

“So if you are giving 10 employment slots to each local government in the country, there are states that will get more than 400 or 300 slots, while Bayelsa will have only 80 because it has only 8 local government areas. So where is the fairness?

“That is why I’m appealing for some kind of concession. Bayelsa should be given additional slots whenever you carry out recruitment your recruitment exercises.”

Earlier, the Assistant Comptroller General of the Nigerian Immigration Service, Zone G, Headquarters, Mrs Abolupe Oladoyin Bewaji, said she was in Bayelsa to seek areas of collaboration with the state government that will be mutually beneficial.

According to her, Bayelsa State is a significant contributor to the economy of Nigeria that deserves special attention, assuring that the Immigration Service will continue to be committed to professionalism and patriotism in their partnership with the state.

ACG Bewaji, who appreciated the Bayelsa Government for its support to security agencies, identified border security, community engagement as well as seamless issuance of passports and visas as some of the possible areas of collaboration between the NIS and the state.

The Assistant Comptroller General of Immigration of Zone G, comprising Bayelsa, Edo, Delta, Enugu and Anambra states was accompanied by some top ranking officers of the zone, including the state Comptroller of the Nigeria Immigration Service, Mr Festus Atteh, on the courtesy visit.

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