Succession crisis is rocking the Nigeria Deposit Insurance Corporation. The NDIC is the country's apex financial undertaker and second only to the Central Bank of Nigeria (CBN) in significance within the banking sector's regulatory framework.

The immediate past Managing Director/CEO of NDIC Ganiyu Ogunleye ended his second term in November last year after ten years in office. The Federal Government subsequently appointed Alhaji Umaru Ibrahim the Executive Director of Corporate Services in the organization as the acting Managing Director.

Already the power tussle that is creating hot air in the Corporation has polarized top government officials such as the Secretary to the Government of the Federation Yayale Ahmed and the Minister of State for Finance Mr. Remi Babalola over the choice of a new Managing Director for the agency.

The power tussle has been blamed on the prolonged absence of President Umaru Musa Yar'adua, who is receiving treatment in Saudi Arabia on heart condition.

The NDIC is wholly owned by the Federal Government through the Central Bank of Nigeria (60 per cent stake) and the Ministry of Finance which holds 40 per cent. Mr. Babalola is said to have disregarded the recommendation of the SGF to the minister of finance on the choice of the new MD/CE for the agency.

Yayale, in a letter dated December 9, 2009 recommended a former Director of the NDIC Dr. Hussein I. Mohammad for the top job. Mohammed holds a doctorate degree in banking and finance, and was a pioneer staff of the NDIC. He has also held positions including being executive director and chairman of management committees of some distressed banks in recent times.

However, Babalola in a letter routed directly to the office of the Vice President Goodluck Jonathan forwarded the name of a certain Owolabi Tiamiyu, who had previously applied for the post of Deputy Director in the same organization for ratification as the new Managing Director. Tiamiyu currently works in the United States' Federal Reserve Bank.

Industry insiders have questioned his nomination because it appears to be a throw-back to the Obasanjo era when several Nigerian expatriates were lured back to the country to take up plum positions regardless of their competences and pedigree. They pointed at the case of Jimi Lawal who was recruited for the disposal of Federal Government houses despite being on the wanted list of failed bank's tribunals of the 1990s, and the choice of Arunma Otei who was brought from African Development Bank to head the Securities and Exchange Commission (SEC) which also generated controversy.

Industry experts who spoke to Daily Trust on condition of anonymity expressed the fear that Babalola's choice may not have what it takes to complement the current efforts of the CBN to sanitize the banking sector based on the new risk focused supervisory framework being implemented. They believe the new man will take "far too long learning the ropes at a time painful, albeit necessary decisions needed to be taken to rescue the sector from the Precipice."

Little is known about Tiamiyu but his promoters believe he has the requisite experience to play a major role in the sector given his work in the US Reserve Bank.

In the same letter, Remi Babalola also nominated Eunice Mbgjikwe as an executive director to take over from Peter Umoh. Eunice Mbgjikwe is currently director special insured institution department which oversees micro finance banks. Some experts fear that the president's absence played up the tussle. As it is, no one is sure where the pendulum will swing to. But the battle line may also be enlarged as the CBN may want to assert its position given its 60 per cent stake.

One of the agencies quoted a source as saying that this was the experience last year when a director general was to be appointed for SEC and the finance ministry outsmarted the Attorney General of the federation. The Finance ministry recommended Arunma Otei ahead of the AGF's candidate Robert Orya who was later appointed NEXIM MD.

Efforts to speak to the spokesman of the NDIC about the controversy failed, but some staff who spoke to Daily Trust directed our reporter to the Ministry of Finance. Spokesman to the finance minister Akintunde Olayinka did not pick his phone when called.

In addition to the Managing Director, the NDIC ACT also provides for the appointment of two Executive Directors each for (Finance and Administration) currently occupied by Alhaji Umaru Ibrahim the Acting MD, and Executive Director (Operations) occupied by Mr. P.N. Umoh.

In the interim, anyone that will eventually be at the helm of the affairs, according to some who spoke to this paper, will be selected by, and serve the pleasure of, the president or his vice as the case may be.