The Senate on Tuesday at plenary passed for second reading, a bill seeking to establish Chartered Institute of Directors of Nigeria.
The bill was sponsored by Senate Leader, Yahaya Abdullahi (APC- Kebbi).
Abdullahi, while leading debate on the bill, said the Institute of Directors of Nigeria established in 1983, was incorporated by the Corporate Affairs Commission (CAC), as a non-profit making public company limited by guarantee.
He said the institute’s major objective was to among others things; provide professional training for directors in the public and private sectors to facilitate effective governance, public accountability and professional efficiency in Nigeria.
He, however, said in discharging its role, the institute required to secure membership of Global Network of Directors Institute (GNDI), the umbrella body of Institute of Directors in the world with headquarters in Canada and European Federation of Directors.
“The Institute requires to be affiliated with these and other related international organisations with specialty or mandate in provision of capacity development services to directors worldwide.
“The Institute is currently not a member of the two world most famous bodies in this sector on the ground that is not established by law in Nigeria to qualify as chartered.
“And that is what this bill seeks to do to ensure that it is established by law to enable it to affiliate with the world organisations in this sector.
“This failure has affected the development of the institute in spite of its long functional existence.
“It has also limited its capacity to participate in international conferences, send its students on exchange of experience visits and a number of benefits that only Chartered Institutes of Directors enjoy.
“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,” Abdullahi said.
He explained that the bill, when passed and signed into law, would serve as a regulatory body for persons serving as directors in both public and private sectors.
He said that the body would determine the standards of knowledge and skills to be attained by persons seeking to become directors and make provision for continuous training and development for the directors, and ensuring professionalism and the promotion of corporate governance values.
Sen. Ajibola Bashiru (APC-Osun) emphasised the need for the establishment of a body to regulate the activities of directors in the public and private sector.
He said providing legal backing through the passage of the bill would result in benefits from interface with recognised international organisations.
The Committee, Chaired by Sen. Ibrahim Shekarau (APC- Kano) was expected to report back in two weeks. (NAN)