As part of his parting gift to the country’s deposit insurance system, the former president of Nigeria Muhammadu Buhari on Saturday gave assent to a Bill making the Nigeria Deposit Insurance Corporation (NDIC) the sole insurer of all insurable deposit liabilities of insured institutions in the country. It is one of those last assignments he did before handing over to the incumbent President Bola Ahmed Tinubu earlier today.
The Bill, titled: “Nigeria Deposit Insurance Corporation, NDIC (Repeal and Re-Enactment) Bill, 2023” was sponsored by the immediate past Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, Uba Sani, who is now the new Governor of Kaduna State.
The new Act described as a key step towards reinventing and re-energizing the country’s banking and financial sector and putting in place enhanced regulatory frameworks in line with global best practices repeals the Nigeria Deposit Insurance Corporation (NDIC) Act, 2006.
Sani, who confirmed the assent to the new Act by the former President in a tweet through his verified Twitter handle, @ubasanius, said it would provide a robust legal framework to strengthen and reposition the NDIC to effectively discharge its statutory responsibilities as the insurer of assets and liabilities in the country’s financial sector.
I recorded another milestone in my legislative journey yesterday as our dear outgoing President, Muhammadu Buhari, GCFR assented to my bill, the Nigeria Deposit Insurance Corporation, NDIC (Repeal and Re-Enactment) Bill, 2023.
Also, he said the Act would bring about operational improvements; align the NDIC with international best practices for deposit insurance corporations; strengthen NDIC’s powers; hold instigators of bank failure to account; expedite the winding-up of failed banks and align it with the provision of the Banks and Other Financial Institutions Act (BOFIA) 2020.
In his tweet, Sani said: “I recorded another milestone in my legislative journey yesterday (Saturday) as our dear outgoing President, Muhammadu Buhari, GCFR assented to my bill, the Nigeria Deposit Insurance Corporation, NDIC (Repeal and Re-Enactment) Bill, 2023.
“The new Act repeals the Nigeria Deposit Insurance Corporation (NDIC) Act, 2006 and makes the NDIC the insurer of all insurable deposit liabilities of insured institutions. It will provide a robust legal framework that will strengthen and reposition the Corporation to effectively discharge its statutory responsibilities; Bring about operational improvements; Align the NDIC with international best practices for deposit insurance corporations; Strengthen NDIC’s powers; Hold instigators of bank failure to account; Expedite the winding-up of failed banks; and align it with the Banks and Other Financial Institutions Act 2020.
“The new Act is a key step towards reinventing and re-energizing the banking and financial sector in Nigeria and putting in place enhanced regulatory frameworks in line with global best practices. President Buhari’s assent to the NDIC bill brings to three the number of assented bills to my credit.
“I wish to extend my profound gratitude to Mr. President for putting the final seal on this bill and making it an Act of the National Assembly. This is a display of sound leadership and a deep understanding of the place of a reinvented financial sector in our economic recovery drive. I wish him all the best in his future endeavours as his tenure comes to an end. “My sincere appreciation to the leadership of the Senate and House of Representatives, and indeed the entire members of the National Assembly for the unity displayed in making NDIC Act 2023 a reality.”
