The Nigerian Senate on Tuesday stripped the Central Bank of Nigeria, CBN, of power to appoint the CEO of the Nigerian Deposit Insurance Corporation, NDIC through an amendment of the Bank Deposit Regulator’s Principal Act.
This followed a report submitted to the upper legislative Chamber by the Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, Senator Mukhail Adetokunbo Abiru which was debated on Tuesday.
The Central Bank of Nigeria had the power to appoint the Chairman and Board members of the NDIC in the principal Act. The provision had been a subject of argument, but the amendment which passed a third reading after rigorous debate at a plenary presided by the Senate President, Godswill Obot Akpabio, now 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 passage of the bill was also meant to strengthen the capacity of the Nigeria Deposit Insurance Corporation to safeguard depositors, ensure the stability of financial institutions, and promote trust in the banking system
