Senate Removes CBN’s Authority to Appoint NDIC CEO

Senate Removes CBN’s Authority to Appoint NDIC CEO

On Tuesday, the Nigerian Senate removed the Central Bank of Nigeria’s (CBN) authority to appoint the Chief Executive Officer of the Nigerian Deposit Insurance Corporation (NDIC) by amending the Principal Act governing the Bank Deposit Regulator.

This decision came after a report from Senator Mukhail Adetokunbo Abiru, Chairman of the Senate Committee on Banking, Insurance, and Other Financial Institutions, was debated in the upper chamber.

Previously, the CBN had the power to appoint the NDIC Chairman and board members, a provision that had been controversial. The newly passed amendment consolidates the President’s authority to appoint the NDIC Chairman and board members, while the CBN will now focus on supervising the corporation instead of making recommendations for appointments.

The legislation, titled “Nigeria Deposit Insurance Corporation Act No 33 of 2023,” aims to enhance the NDIC’s capacity to protect depositors, stabilize financial institutions, and foster trust in the banking system. The bill was sponsored by Senator Abiru and supported by all members of the Senate Committee on Banking, Insurance, and Other Financial Institutions.

Senator Abiru noted that the NDIC will maintain its autonomy and independence under the new amendments, aligning with global best practices. He emphasized the importance of these changes in improving the NDIC’s effectiveness and safeguarding depositors’ interests in a rapidly evolving financial landscape.

Following a thorough review, the bill was passed into law by the Senate President, Godswill Obot Akpabio.