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Discordant tunes as CBN, Bankers directors, disagree over proposed NDIC ammndment Act

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There discordant tunes on Thursday at the senate as a bill to amend the Nigeria Deposit Insurance Corporation (NDIC) Act No. 63, 2023, pitted participants from the banking and insurance sectors against themselves

The bill aims to enhance the Corporation’s effectiveness, independence, and autonomy.

The Bill which is sponsored by Mukhail Abiru, Chairman Senate Committee on Banking, Insurance and other Financial Institutions have passed second reading at the Senate.

Among several proposed ammendment, one of the most contentious is the removal of the “Concurrence” role for the Central bank of Nigeria (CBN) and substituting it with a rather “collaborative” role in an attempt to make the NDIC more independent in taking decisions bordering on its policy objectives.

While the Central Bank of Nigeria noted its opposition against this ammendment during a public hearing on the Bill at the Senate on Thursday, the bankers directors and other stakeholders however endorsed it.

The Bill proposed ammendments to sections 2, 3 and 4 of the principal Act substituting the word “collaboration” for the word “concurrence” .

Acting director, financial policy and regulation departmet of CBN John Onoja, said the meaning of Collaboration is that NDIC takes the decision and collaborates with CBN.

Conversely, Mustafa Chike-Obi, Chairman of the Bank Directors Association of Nigeria, applauded the removal of the CBN concurrence requirement in Section 32. He noted this change aligns with the NDIC’s mandate to independently regulate insured deposit liabilities.

The Financial Services Regulation Coordinating Committee (FSRCC), in its memorandum to the Senate Committee also protested ammendment to section 16, increasing the capital base of the NDIC from 50 billion to 500 billion which shall be subscribed and held only by the federal government.

“Increasing authorized share capital from 50 billion to 500 billion and fully owned by the federal government render the additional capital redundant as it would not be yielding the required return on investment. The extant share capital structure should be between the Ministry of Finance and CBN as sustained in the principal Act”, it read.

Additionally, Nestok Ikeagu, director of legal at the Securities and Exchange Commission (SEC), objected to the amendment removing the SEC Director-General from the NDIC board. He emphasized that the SEC’s role in investor protection justifies its position on the board, and removing it would hinder interagency collaboration.

Meanwhile the NDIC boss voiced his supoort for the Bill, which he said will strengthen the NDIC.

Also speaking in favour of the Bill, Ronke Sokefun, the former chairman of the NDIC board decried that the NDIC lost it’s independence as liquidator to the CBN.

“Thank you for taking a look at the traditional role of the corporation, which is to act as the liquidator in the event of a bank’s winding up. From the traditional role which the corporation has always executed, all of a sudden, it has to be at the whims and caprice of the CBN, the CBN can decide to have another liquidator.

Abiru, Chairman of the Committee said the Senate will look into all the objections

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Senate

Senate Leader, Bamidele, Denies Altercation with Akpabio

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The Office of the Senate Leader has strongly refuted claims of an altercation between the Senate President, Senator Godswill Akpabio, and Senate Leader, Senator Opeyemi Bamidele, as alleged in a post by Jackson Ude on the X platform (formerly Twitter).

In a statement issued by the Directorate of Media and Public Affairs, the report was dismissed as a fabrication by a known purveyor of falsehoods, accusing Ude of abandoning journalistic ethics in favor of baseless rumors aimed at creating discord within the Senate.

The allegations suggested that Senators Akpabio and Bamidele were involved in a physical confrontation on Tuesday in the Senate Cafeteria, purportedly stemming from leadership disputes and alleged marginalization of the South West in key committee appointments.

However, the Senate Leader’s Office categorically denied any such incident, providing evidence to counter the claims.

The Senate Leader’s Office reaffirmed Senator Bamidele’s unblemished record of non-violence throughout his political career, including his tenure as the President of the National Association of Nigerian Students (NANS).
The statement explained that shortly after the alleged incident, Senators Akpabio and Bamidele, alongside other principal officers, jointly hosted the Chinese Ambassador to Nigeria, Mr. YU Dunhai, and his delegation. Photographs from this meeting, widely published in national newspapers, were cited as proof of their cordial relationship.

Explaining further the statement indicated that both Senators reportedly left the National Assembly premises together in the same vehicle, further underscoring the lack of animosity between them.

The statement quoted Senator Bamidele to have warned against defamatory publications, emphasizing his readiness to invoke the Cybercrime Act of 2015 and other legal measures to protect his reputation and office.

The Senate Leader’s Office urged the public to disregard the misinformation, describing it as a calculated attempt to destabilize the Senate and disrupt national politics.

The statement reiterated Senator Bamidele’s commitment to his duties and called for respect for the integrity of the Senate as an institution.

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Stakeholders Divided Over Proposed Chartered Out-of-Home Media Practitioners Bill

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A public hearing at the National Assembly on the proposed Chartered Out-of-Home Media Practitioners of Nigeria Establishment Bill on Wednesday revealed sharp divisions among stakeholders in the advertising industry.

The bill, sponsored by Senator Enyinnaya Abaribe, Chairman of the Senate Committee on Power, is aimed to establish a regulatory body to oversee, promote, and professionalize the out-of-home (OOH) media sector, which includes billboards, digital displays, and transit advertising.

While some stakeholders, including the Council for the Regulation of Engineering in Nigeria (COREN), the Advertisers Association of Nigeria (ADVAN), and the Outdoor Advertising Association of Nigeria (OOAN), supported the bill, others, like the Federal Ministry of Information, the Nigerian Press Council (NPC), and the Advertising Regulatory Council of Nigeria (ARCON), opposed it.
Speaking at the hearing, Abaribe outlined the bill’s objectives, which include standardizing the OOH sector, addressing safety and environmental concerns, and fostering innovation.

“This bill aims to ensure that the practice of owning and managing OOH assets is elevated to a standard that promotes quality, uniformity, and environmental aesthetics,” Abaribe said.

He highlighted the challenges in the industry, such as lack of regulation, inconsistent practices, and environmental degradation caused by unregulated billboard installations. The proposed body would enforce standards, ensure public safety, and enhance the aesthetics of Nigeria’s urban and rural landscapes.

The Ministry of Information, represented by a director overseeing the office of the permanent secretary, opposed the creation of a new agency, arguing that it would place unnecessary pressure on governance.

The Executive Secretary of the Nigerian Press Council also criticized the bill, stating that existing units are already performing the functions proposed for the new body.

ARCON’s Director General, Olalekan Fadolapo, warned that creating another agency would contradict the Steve Oronsaye panel’s report, which recommends streamlining government agencies to reduce redundancy.
COREN’s representative, Dipo Mabogaje, argued in favor of the bill, noting that while ARCON regulates advertising content, a dedicated body should regulate the structural integrity and environmental impact of billboards.

Similarly, the Presidents of ADVAN, Osamede Uwubanmwen, and the Association of Advertising Agencies of Nigeria (AAAN), Lanre Adisa, expressed strong support for the bill, emphasizing the need for improved industry standards and professionalism.
The Senate Committees on Establishment, Information, and Media will review the input from stakeholders before making recommendations on the bill. While supporters believe the legislation will address pressing issues in the OOH sector, critics argue that it could lead to redundancy and inefficiencies in governance.

The debate underscored the complexities of balancing industry growth with regulatory efficiency in Nigeria’s evolving advertising landscape.

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At International Children’s Day Senator Natasha Advocates for Digital Education in Nigeria

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At the celebration of the 2024 International Children’s Day, Senator Natasha Akpoti-Uduaghan of Kogi Central has canvassed for the digitalisation of education in Nigeria to prepare schoolchildren for modern challenges.

Speaking at an event organized by the Senate Committee on Women Affairs, Akpoti-Uduaghan highlighted the benefits of digital learning, citing Rwanda and Ghana as successful examples.
She announced the distribution of 5,000 digital devices to public schools in her constituency and pledged to equip a secondary school in the FCT with similar tools.

“Digital education simplifies learning and ensures every child has access to the best resources,” she noted.

As Chair of the Senate Committee on Local Content, the senator has championed education reforms and capacity building to empower Nigerian youth.
According to her, the significance of digitisation of education cannot be ignored if school children must cope up with the realities of life.

She stressed that every child has the right to education, regardless of their background.

The senator highlighted the benefits of digital learning, citing examples from Rwanda and Ghana where most public primary and secondary schools have already gone digital.

Akpoti-Uduaghan also shared her efforts to promote digital education in her community.

“Education is a fundamental right, and the future of education lies in its digitalisation.
Over the past three weeks, I have commissioned 5,000 digital learning devices, which have been distributed to public primary and secondary schools in Kogi Central. Embracing digitalisation in education is essential.

“As you sit here today, remember that your colleagues in Rwanda and Ghana have successfully transformed their public primary and secondary schools into digital learning environments. What does this mean? It means simplifying education and making the best educational resources accessible to every child,” she stated.

Additionally, she pledged to equip one public secondary school in the FCT with digital learning devices.

The senator’s advocacy for digital education is part of her broader commitment to empowering Nigerian youth. She has been a vocal advocate for education and has worked to promote local content and capacity building in various sectors.

As the chairman of the Senate Committee on Local Content, Akpoti-Uduaghan has met with representatives from the Industrial Training Fund (ITF) and Bank of Industry (BoI) to strengthen capacity building and collaboration.
Her efforts aim to enhance synergy between government agencies and maximise impact on Nigerian beneficiaries.

In attendance are Senator Ireti Kingibie, Senator Neda Imasuen, Senator Mukhail Adetokunbo Abiru, Senator Ipalibo Banigo, Minister of Women Affairs, ably represented by the Permanent Director of Child Development, Association of Society Engineers, amongst others.

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