Ikeja: The Nigeria Deposit Insurance Corporation (NDIC) has called for the continued support of the judiciary in overcoming legal hurdles that delay the fulfilment of its mandate to maintain public confidence in the banking sector. Mrs. Emily Osuji, Acting Managing Director of NDIC, made this appeal during the opening ceremony of a sensitisation seminar for Judges of the Federal High Court held in Ikeja.
According to News Agency of Nigeria, the event was organised by the NDIC in collaboration with the National Judicial Institute (NJI), focusing on the theme, ‘Strengthening Adjudication and Depositor Confidence in the Banking System’. Osuji highlighted that the seminar aimed to foster collaboration, enlighten, and build the capacity of judges, recognising them as critical stakeholders in adjudicating matters related to failed banks and ensuring financial system stability. The theme aligns with global standards for banking system stability and the protection of depositors from significant losses due to bank failures.
Osuji further elaborated on the corporation’s vision, mandate, and supervisory role, detailing its achievements over the past 37 years, including the orderly and efficient closure of Heritage Bank. Despite these accomplishments, she acknowledged the corporation still faces legal challenges such as lengthy judicial proceedings and the execution of judgments against assets of the corporation for liabilities of banks in liquidation. Osuji cited recent proceedings concerning the liquidation of Heritage Bank and legal procedural interpretations of the NDIC Act of 2023 as examples of delays caused by court orders.
Chief Justice of Nigeria, Justice Kudirat Kekere-Ekun, commended NDIC’s efforts, noting that the seminar helps judicial officers stay informed on new trends in the evolving banking sector. Represented by Justice John Okoro, Kekere-Ekun emphasized the complexities associated with banking litigation, which necessitate a judiciary that is well-versed in the nuances of financial laws and deposit insurance policies. She underscored the importance of a robust deposit insurance framework in safeguarding the integrity of the financial system.
Justice Salisu Abdullahi, Administrator of the National Judicial Institute (NJI), stressed the seminar’s significance in advancing a resilient, transparent, and well-regulated financial ecosystem anchored in sound legal principles. He highlighted NJI’s mandate of continuous judicial education and capacity enhancement for judicial officers, enabling them to navigate complex financial regulations, interpret emerging legal frameworks, and adjudicate disputes with precision. The seminar aims to identify strategies to fortify deposit insurance mechanisms and streamline judicial responses to financial instability.
Justice John Tsoho, Chief Judge of the Federal High Court, represented by Justice Binta Nyako, also discussed some challenges and how the annual seminar is helping to bridge the knowledge and information gap. He pointed out that digital banking, cryptocurrency, and decentralized finance have introduced new dimensions to financial transactions, prompting regulators and the judiciary to adapt swiftly to these emerging financial realities.
