Public and private sector stakeholders in the financial services sector have expressed their support for the passage of the Nigeria Deposit Insurance Corporation (NDIC) Act 2006 Amendment Bill currently before the National Assembly.
The lead institutions in the sector said that the proposed amendment of the Act would enhance the corporation’s capacity in its sustained drive towards improving the nation’s financial system stability with the attendant positive implications for the economy.
The stakeholders, who shared their views on the Bill at a public hearing organized on Wednesday by the Senate Committee on Banking, Insurance and Other Financial Institutions, were unanimous in their submission that the current NDIC Act 2006 was due for amendment in view of the tremendous economic and technological changes that had taken place in the financial system since 1988 when the Act was enacted and its repeal and subsequent re-enactment in 2006.
In his presentation at the public hearing, NDIC’s Managing Director/Chief Executive Officer, Mr. Bello Hassan, maintained the repeal and re-enactment of the NDIC Act of 2006 had become imperative in order upgrade the nation’s deposit insurance system operations to meet global best practices.
The deposit insurance expert commended the leadership of the Senate, the committee’s Chairman and the members and other lawmakers in the Red Chamber for studying the Act, identifying the lapses in its provisions and championing the need for the repeal and re-enactment of the extant legislation.
In his presentation at the public hearing, the sponsor of the Bill, Sen. Uba Sani, pointed out that emerging trends in the global financial system had made it imperative to strengthen the powers of the NDIC through the amendment bill towards advancing the stability of the nation’s financial sector in line with global best practice.
He assured that inputs gathered from the public hearing and submissions already received from stakeholders would be given serious consideration as the bill aims to make the NDIC autonomous and strengthen its powers in the interest of the country.
In his remarks, the Senate President, Sen. Ahmed Lawan, who was represented by the Chairman, Senate Committee on Rules and Business, Sen. Sadiq Umar, noted that the new realities to which the NDIC was exposed, underscored the need for the amendment. He said, the Senate was interested in examining all sides relating to the Act before its passage.
The Central Bank Governor, Godwin Emefiele, who was represented by the Director, Legal Department, Mr. Kofo Salam-Alada, said the apex bank was in support of the passage of the bill, having taken a critical look at the proposed amendments.
Some of the stakeholders who supported the passage of the bill include the Nigerian Financial Intelligence Unit (NFIU), National Insurance Commission (NAICOM), Association of National Accountants of Nigeria (ANAN), Corporate Affairs Commission (CAC), and Economic and Financial Crimes Commission (EFCC), Trade Union Congress of Nigeria (TUCN).
Others are Assets Management Corporation of Nigeria (AMCON), Chartered Institute of Bankers of Nigeria (CIBN) on behalf of the banking industry and body of bank CEOs and National Association of Microfinance Banks (NAMB), amongst others.
Photo Caption
NDIC Managing Director, Bello Hassan (middle), flanked by representative of the CBN Governor and Director, Legal Department, Kofo Salam-Alada (left) and the corporation’s Executive Director (Corporate Services) Emily Osuji, while responding to journalists’ questions after the Public Hearing on the NDIC Act 2006 Amendment Bill organised by the Senate Committee on Banking, Insurance and Other Financial Institutions yesterday in Abuja
