LAGOS, Nigeria (VOICE OF NAIJA)-The Senate Committee on Banking, Insurance, and other Financial Institutions is set to convene a public hearing on Thursday to discuss proposed amendments to the Central Bank of Nigeria Act and the Nigeria Deposit Insurance Corporation Act.
This information was outlined in an invitation letter signed by the clerk of the committee, Ogunrinde Tinuke.
The bills under consideration received initial traction in the Senate earlier this year.
On February 27, 2024, a bill to amend the CBN Act No.7 of 2007 passed its second reading, followed by a similar progression for a bill amending the NDIC Act No.63 of 2023 on February 29.
Both bills were subsequently referred to the Committee on Banking, Insurance, and Other Financial Institutions for further review.
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Both bills were introduced by Mukhail Abiru, the Chairman of the Committee, and received additional support from 41 committee members who co-sponsored them.
The proposed amendment to the NDIC Act aims to enhance the Corporation’s effectiveness, ensure its independence and autonomy, and align it with present-day circumstances.
Meanwhile, the proposed amendment to the CBN Act intends to implement several changes, including limiting the CBN governor’s tenure to a single non-renewable six-year term, raising federal government loan advances from 5% to 10%, and boosting the bank’s paid-up capital from N100 billion to N1 trillion.
Additionally, the bill suggests establishing a committee to coordinate Monetary and Fiscal Policies, altering the leadership structure of the bank’s Board of Governors, increasing the number of CBN deputy governors to five, requiring National Assembly approval for the CBN board’s budget, and mandating the publication of CBN policies.