Why Financial Services Industry Stakeholders Canvass Support For NDIC Act Amendment Bill

stakeholders from the public and private sector across the financial services industry have canvassed support for the Nigeria Deposit Insurance Corporation (NDIC) Act 2006 Amendment Bill currently before the National Assembly with a view to strengthening the capacity of the Corporation to contribute more effectively and efficiently to the stability of the financial system.

At a public hearing organized yesterday by the Senate Committee on Banking, Insurance and Other Financial Institutions, the stakeholders 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 landscape since the enactment of the NDIC Act in 1988 and the last repeal and re-enactment in 2006.

In his presentation at the hearing, NDIC’s Managing Director/Chief Executive Officer, Bello Hassan said the repeal and re-enactment of the NDIC Act of 2006 was not only timely but necessary if the Deposit Insurance System in Nigeria was to be placed at par with those of other jurisdictions in compliance with best practice.

He commended the Chairman of the Senate committee on Banking, Insurance and Other Financial Institutions, Sen. Uba Sani for taken time to study the legal framework for Deposit Insurance in Nigeria, identified the gaps in the framework and decided on the need for the repeal and re-enactment of the extant legislation. He also expressed gratitude to the leadership of the Senate and the entire senators for working tirelessly to bring the Bill to the legislative stage of public hearing.

The sponsor of the Bill, Sen. Uba Sani said, rapid changes 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 through 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.

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, represented by the Director, Legal Department, Kofo Salam-Alada said, the Apex bank did not have any hesitation to the passage of the bill, having taken a critical look at the document.

Stakeholders who lent voice in support of passage of the bill included the Nigerian Financial Intelligence Unit (NFIU), National Insurance Commission (NAICOM), Association of National Accountants of Nigeria (ANAN), Corporate Affairs Commission (CAC),Economic and Financial Crimes Commission (EFCC), Trade Union Congress of Nigeria (TUCN), 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 amongst others.