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Senate holds public hearing on CBN, NDIC Act amendment Bills Thursday

The Senate Committee on Banking, Insurance and Other Financial Institutions will on Thursday hold a Public hearing on the proposed Bills seeking to amend the Central Bank of Nigeria Act and the Nigeria Deposit Insurance Corporation Act.

This was contained in an invitation letter signed by Ogunrinde Tinuke, clerk of the Committee.

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The Senate on February 27, 2024, passed for a second reading a Bill for an Act to Amend the CBN Act No.7 og 2007; and on on February 29, read for the second time a Bill for an Act to Amend the NDIC Act No.63, 2023. The Senate referred both Bills to the Committee on Banking, Insurance and Other Financial Institutions for further legislative action.

Both Bills were sponsored by Mukhail Abiru, Chairman of the Committee and co-sponsored by 41 members of the committee.

While the proposed amendment to the NDIC Act seeks to make the Corporation more effective ensure its independence and autonomy and bring it in line with current realities; the proposed amendment to the CBN Act seeks to, limit the tenure of the CBN governor to a single non-renewal tenure of six years, increase loan advances to federal government from 5%to 10%, and increase the paid-up capital of the Bank from N100 billion be N1trillion.

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The Bill also proposes the establishment of a committee to coordinate Monetary and Fiscal Policies, a change in leadership of the bank’s Board of Governors, an increase of CBN deputy governors to five, subject the budget of the CBN board to NASS approval, publication of CBN policies.