Senate Revokes CBN’s Authority to Appoint NDIC CEO

The Nigerian Senate has officially removed the Central Bank of Nigeria’s (CBN) authority to appoint the Chief Executive Officer of the Nigeria Deposit Insurance Corporation (NDIC) through an amendment to the Bank Deposit Regulator’s Principal Act.

This decision, passed on Tuesday, reflects a significant shift in the governance of the NDIC, reinforcing the autonomy of the institution.

Senator Mukhail Adetokunbo Abiru, Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, presented the amendment, which received broad support during debates led by Senate President Godswill Obot Akpabio.

The amendment transfers the appointment power to the President, consolidating the NDIC’s governance while allowing the CBN to focus on supervising the corporation.

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In explaining the rationale behind the legislation, Abiru stated, “The NDIC based on the new amendment of its Act would focus on the examination of the banks… The amendments aim to strengthen the Nigerian financial system.”

He emphasized the need for the NDIC to operate with greater independence, ensuring it can effectively safeguard depositors’ interests and enhance public confidence in the banking sector.

This legislative change comes as part of ongoing efforts to address concerns surrounding the NDIC’s operational effectiveness and aligns with global best practices.