The Senate Committee on Banking, Insurance, and Financial Institutions is set to convene a Public Hearing on Thursday to discuss proposed amendments to the Central Bank of Nigeria (CBN) Act and the Nigeria Deposit Insurance Corporation (NDIC) Act.
According to an announcement by Ogunrinde Tinuke, the Committee’s clerk, the hearing aims to gather input on the proposed Bills.
Recently, the Senate passed a Bill for the amendment of the CBN Act and another for the amendment of the NDIC Act. Both bills were referred to the Committee for further legislative action.
Sponsored by Mukhail Abiru, the Chairman of the Committee, and co-sponsored by 41 members, these amendments are pivotal to modernizing financial regulations in Nigeria.
The proposed amendments to the NDIC Act aim to enhance the Corporation’s effectiveness, independence, and autonomy, aligning it with contemporary standards. Meanwhile, the amendments to the CBN Act propose significant changes, including limiting the CBN governor’s tenure to a single non-renewable term of six years, doubling loan advances to the federal government, and substantially increasing the Bank’s paid-up capital.
Key provisions of the Bill include the establishment of a committee to coordinate Monetary and Fiscal Policies, restructuring the leadership of the bank’s Board of Governors, expanding the number of CBN deputy governors, subjecting the CBN board’s budget to National Assembly approval, and mandating the publication of CBN policies.
These amendments signify a concerted effort to strengthen financial oversight and governance in Nigeria, fostering transparency and accountability in the country’s financial institutions.
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