Senators: Why President, Not CBN, Should Appoint Mangt Staff for NDIC

Sunday Aborisade in Abuja

A cross section of senators have said the Nigeria Deposit Insurance Corporation (NDIC) would enjoy full autonomy if the President is allowed to appoint its management staff, contrary to the current practice which empowers the Central Bank of Nigeria (CBN) to do so.

The senators spoke with THISDAY after the Senate passed for second reading a bill seeking to amend the NDIC Act.

The bill was sponsored by the Chairman, Senate Committee on Banking, Insurance and Other Financial Institutions, Senator Adetokunbo Abiru (APC, Lagos East).

Abiru, said the proposed legislation was aimed at making the corporation more effective, ensuring its independence and autonomy, and would bring it in line with current realities.

While leading the debate on the bill, Abiru noted that there had been series of appeals from and consensus among stakeholders on the need to amend the Act to address all the issues that had been raised against it.

The lawmaker added that the bill proposes to empower the President of the country to make direct critical appointments into the agency.

This is against the extant Act which restricts the President’s power for approving the appointment of the Managing Director and executive directors based on recommendations by the Governor of the Central Bank of Nigeria.

Reacting to the development, the Chairman of the Senate Committee on Finance, Senator Sani Musa, who is representing Niger East, said the proposed amendment being sought in the Bill would bring about efficiency in the agency

He said, “When the bill is passed, it would empower the president to appoint the managing director and executive directors of the corporation.

“The essence of it is to make the NDIC more functional and be responsive to its responsibility without undue interference.

“Specifically, it will make the NDIC to enjoy independence if Mr. President is given all that powers to make direct appointment for the NDIC instead of waiting for the CBN to make the appointment.

“If there is any issue with deposit money banks, CBN will intervene. So, it’s better for Mr. President to use his powers to appoint.”

Another Senator who also spoke on the issue, former governor of Plateau State, now representing Plateau South in the red chamber, Simon Lalong, also supported the bill.

Lalong said, “In the last two or five years, we have had problems and these problems were part of these anomalies.

“I have seen an effort to correct some of these anomalies and that will go a long way in strengthening the effectiveness and efficiency of the institution.

“It is better to give the President, the right to decide who mans this place. There have been petitions whenever people were appointed into the NDIC board. The right of the President to appoint them is very normal at this time.”

The Deputy Senate President, Senator Jibrin Barau, who presided over plenary, said the bill would further strengthen the NDIC to perform its statutory functions.