Senate passes Chartered Institute of Directors of Nigeria Establishment Bill

The Nigerian Senate has passed a bill seeking to give legal backing to the establishment of the Chartered Institute of Directors of Nigeria.

The bill, which was sponsored by Senator Yahaya Abdullahi, scaled third reading on Tuesday during plenary and was passed.

The Institute will provide professional training to Directors in the Public and Private Sectors to facilitate effective governance, public accountability and professional efficiency in administering the Public and Private Sectors in Nigeria.

The bill: The bill seeks to task the Institute with determining the standards of knowledge and skills to be attained by persons seeking to become Directors.

The Institute will also serve as a regulatory body for persons serving as directors in both public and private sectors.

The bill passed its second reading in 2022. Senator Yahaya while leading debate on the bill said the Institute of Directors of Nigeria was established in 1983 and was incorporated by the Corporate Affairs Commission (CAC), as a non-profit making public company limited by guarantee.

He said “The bill is proposed to make the Nigerian Institute of Directors a Chartered Institute to acquire all the recognitions, benefits and technical support needed to make it effective in provision of capacity development services for Directors in the Private and Public Sectors in Nigeria and the rest of the world.”

He said the Institute will also make provision for continuous training and development of the Directors professionalism and the promotion of corporate governance values.

After scaling second reading in September 2022, the president of the Senate, Ahmad Lawan referred the bill to the Committee on Establishment and Public Service headed by Senator Ibrahim Shekarau representing Kano Central.

Shekarau in his speech said the bill seeks to, among others, promote the practice of Directorship in public and private sectors as well as promote high ethical standards in the profession.

What you should know

• The Institute of Directors Nigeria ( IoD Nigeria) is a Professional Institute Founded on May 17, 1983.
• It is a Professional Institute which promotes directors, develops corporate governance, represents our members to government, enhances the economy for business development and provides services to our membership.
• The Institute aims at safeguarding the integrity and status of directorship as a profession by serving as the professional body for directors and through the provision of a professional designation which serves to assess and credit mastery.
• The bill passed by the senate today gives legal backing to the establishment of the Chartered Institute of Directors of Nigeria.