The Nigeria Deposit Insurance Corporation has called on the National Assembly to include in the amendment to the NDIC Act, 2007 a provision that states clearly its role as the sole liquidator of banks licensed deposit-taking institutions.
The Managing Director/Chief Executive Officer, NDIC, Ibrahim Umaru, disclosed this at the NDIC retreat for members of the House of Representatives Committee on Insurance and Actuarial Matters in Lagos on Thursday.
Umaru said the NDIC had earlier met with the Central Bank of Nigeria and was in agreement as to the sections that would be amended.
He added that the NDIC was working very hard with the Senate Committee on Banking and Other Financial Institutions to ensure that the review and re-enactment of the Act was given due attention.
He said, “In addition to the four sections in contention, we have proposed three new areas that we need to look at, which border on the need to have a better, more robust definition of deposit; to have a provision where it is empathically stated that the NDIC is the sole liquidator of banks and licensed deposit-taking institutions; and to exclude the NDIC from double taxation.
“The proposals are informed by practical experiences so far, as we have noticed that there is a need to have a relook at some of the sections, and also make new additions.”
The Chairman, Committee on Actuarial and Insurance Matters, House of Representatives, Femi Fakeye, said the committee was working on getting a new Act for the NDIC.
He said the last National Assembly could not complete the process, adding that this led to the repeat of the process.
According to him, a retreat was held last year in Abuja in a bid to re-enact the Act, which was successful as the NDIC Act was passed this year by the House.
Fakeye said, “Lately, the management of the NDIC brought it to our attention that they were having issues with the Act, saying the issues the CBN wanted addressed were not covered in the House of Representatives’ version of the Act. It is a good thing because the Senate and the House of Representatives’ are yet to harmonise.
“We need to carry our members along so that when we get to harmonisation, we can all go with the flow. The amendment of the Act is possible because the Senate is yet to get to the third reading. However, we do not know when the harmonisation will be because the National Assembly is on vacation until September 22.
He added, “We are here to take another look at the efforts that have been ongoing for about two years now on the NDIC Act of 2007 and re-enact the one for 2018. Today’s meeting is to look at the details of everything. This has been done for a while, but lately, we are having to look at issues with the CBN to ensure that everybody is on the same page.”
Fakeye said the amendment of the Act would have been completed before the end of the current National Assembly in June next year.