Nigeria: National Assembly to Give 'Accelerated Hearing' to Ndic Amendment Act - Senate President

22 October 2019

The National Assembly will give an 'accelerated hearing' to the Nigeria Deposit Insurance Corporation (NDIC) amendment act, Senate President Ahmed Lawan has said.

He said the National Assembly will expedite action when plenary resumes.

"When we resume plenary, the NDIC Act Amendment Bill will be a top priority," Mr Lawan noted.

Mr Lawan disclosed this on Monday during the 30th-anniversary ceremony of the NDIC.

Vice President Yemi Osinbajo; Ministers Festus Keyamo and Raji Fashola and the Ooni of Ife, Adeyeye Ogunwusi attended the event.

The anniversary celebration was held at the Transcorp Hilton in Abuja.

The Senate president's comment was in response to a call by the Ooni for the National Assembly to repeal the existing act of the NDIC.

"You will all agree to the need for an amendment of the NDIC act. I call on the Senate President and Speaker of the House of Representatives to correct the NDIC law," the traditional ruler had said.

In response, Mr Lawan said, "The Ooni of Ife moved a royal motion; when there is such motion, we don't need to put it to question.

"Kabiyesi, your motion has received a yes, the ayes have it," Mr Lawan said to thunderous applause from the crowd.

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"We'll work closely with NDIC to provide that amendment that will make you stabilise the banking system," he noted.

NDIC Act Conundrum

PREMIUM TIMES last year reported how the NDIC Managing Director, Umaru Ibrahim, blamed the delay in the amendment of the NDIC Act (2006) for the non-payment of entitlements to depositors of funds trapped in liquidated banks in the country.

Mr Umaru said depositors of Savanah Bank, Fortis Micro-Finance Bank and Aso Savings & Union Homes are suffering because they have not been able to recover their monies trapped in the banks since they were liquidated.

He said the suffering of the depositors would continue unless the NDIC enabling Act was speedily amended by the National Assembly.

Citing the defunct Savanah Bank as an example, the MD said the NDIC Act, as presently enacted, inhibits the corporation from reimbursing depositors since their bank licences were yet to be revoked due to protracted litigation.

The NDIC complements the regulatory and supervisory role of the Central Bank of Nigeria (CBN), although it reports to the Ministry of Finance.

It advises the CBN in the liquidation of distressed banks and manages distressed banks' assets until they are fully liquidated.

The corporation provides a safety net for depositors in the liberalised banking sector.

It was established in 1988 and operates under the NDIC Act of 1990 which was later amended in 2006.

Meanwhile, in his welcome address at the event, the managing director said though the establishing act was reviewed in 2006, there are several other issues that are yet unresolved.

He called for the act to be reviewed again.

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