{"id":849,"date":"2024-10-29T16:24:28","date_gmt":"2024-10-29T16:24:28","guid":{"rendered":"https:\/\/dailyechoes.ng\/?p=849"},"modified":"2024-10-29T16:24:28","modified_gmt":"2024-10-29T16:24:28","slug":"senate-passes-ndic-bill-to-safeguard-bank-depositors-funds-stabilise-financial-institution","status":"publish","type":"post","link":"https:\/\/dailyechoes.ng\/index.php\/2024\/10\/29\/senate-passes-ndic-bill-to-safeguard-bank-depositors-funds-stabilise-financial-institution\/","title":{"rendered":"Senate Passes NDIC Bill To Safeguard Bank Depositors\u2019 Funds, Stabilise Financial Institution."},"content":{"rendered":"<ul>\n<li dir=\"auto\">Senate Passes NDIC Bill To Safeguard Bank Depositors\u2019 Funds, Stabilise Financial Institution.<\/li>\n<\/ul>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">In a bid to protect the interest of Bank\u00a0 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\u2019s capacity to safeguard depositors, ensure the stability of financial institutions, and promote trust in the banking system.<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">The legislation, titled, \u201cNigeria Deposit Insurance Corporation Act No 33 of 2023,\u201d was sponsored by Senator Mukhail Adetokunbo Abiru (Lagos East) and all the members of the Senate Committee on Banking, Insurance and other Financial Institutions.<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">\u00a0Abiru presented the report of the\u00a0 panel at plenary on Tuesday.<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">H said the bill would also make the NDIC, more effective, safeguard its independence and autonomy and\u00a0 bring it in line with current realities and best practices.<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">The Bill consolidated the power of the President to appoint the Chairman and members of the board of the NDIC while the Central Bank\u00a0 of Nigeria (CBN) which hitherto recommend to the appointees, would now concentrate on supervising\u00a0 the corporation.<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">The NDIC based on the new amendment of its Act, would focus on the examination of the banks.<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">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.<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">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.<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">He said, \u201cThe Nigerian Deposit Insurance Corporation (Amendment) Bill, 2024, is thus a critical piece of legislation aimed at strengthening the Nigerian financial system.<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">\u201cThe proposed amendments will enhance the NDIC\u2019s capacity to safeguard depositors, ensure the stability of financial institutions, and promote trust in the banking system.<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">\u201cGiven the rapidly evolving nature of the financial sector, this Bill represents a timely response to the challenges and opportunities that lie ahead.\u201d<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">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.<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">He said, \u201cTo further empower the corporation by guaranteeing its independence in performing its statutory functions in line with Section 1 (3) of the principal Act.<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">\u201cThe principal (2023) Act curiously restricts the President\u2019s 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.<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">\u201cThe (2024) bill (now)\u00a0 seeks to amend this provision to bring it in line with and in consonance with Mr. President\u2019s power of appointment as enshrined in the Constitution of the Federal Republic of Nigeria 1999 (as amended).<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">\u201cThe provisions of the principal Act which makes the Permanent Secretary, Ministry of Finance the Chairman of the Board is also being reviewed.<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">\u201cThis is because the workload and busy schedule of that office is such that makes such appointment untenable.<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">\u201cThe 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.<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">Fielding questions from Journalists, Senator Abiru said,\u201cThis is to forestall the recent situation where the Corporation faces challenges in its operations as a result of the absence of a board.\u201d<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">Abiru said\u00a0 there was a general agreement among stakeholders of the importance of the NDIC\u00a0 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.<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">He said, \u201cConsidering the above therefore, the general consensus among stakeholders was that it is important that the legal framework is reviewed.<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">\u201cThis 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.<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">\u201cThis is particularly because the Corporation plays a vital role in safeguarding the interests of depositors and promoting confidence in the financial sector.<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">\u201cThe 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.\u201d<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">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.<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Senate Passes NDIC Bill To Safeguard Bank Depositors\u2019 Funds, Stabilise Financial Institution. In a bid to protect the interest of Bank\u00a0 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\u2019s capacity to safeguard depositors, ensure the stability of [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":24,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[120,492,72,491],"class_list":["post-849","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general-news","tag-cbn","tag-depositors","tag-fg","tag-ndic"],"_links":{"self":[{"href":"https:\/\/dailyechoes.ng\/index.php\/wp-json\/wp\/v2\/posts\/849","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dailyechoes.ng\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dailyechoes.ng\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dailyechoes.ng\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dailyechoes.ng\/index.php\/wp-json\/wp\/v2\/comments?post=849"}],"version-history":[{"count":1,"href":"https:\/\/dailyechoes.ng\/index.php\/wp-json\/wp\/v2\/posts\/849\/revisions"}],"predecessor-version":[{"id":850,"href":"https:\/\/dailyechoes.ng\/index.php\/wp-json\/wp\/v2\/posts\/849\/revisions\/850"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dailyechoes.ng\/index.php\/wp-json\/wp\/v2\/media\/24"}],"wp:attachment":[{"href":"https:\/\/dailyechoes.ng\/index.php\/wp-json\/wp\/v2\/media?parent=849"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dailyechoes.ng\/index.php\/wp-json\/wp\/v2\/categories?post=849"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dailyechoes.ng\/index.php\/wp-json\/wp\/v2\/tags?post=849"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}