The Nigeria Deposit Insurance Corporation (NDIC) has underscored the urgent need for closer collaboration between the legal and financial regulatory sectors to bolster depositor protection and maintain the stability of Nigeria’s banking sector.
Speaking at the opening of a sensitisation seminar for Federal High Court judges in Lagos on Monday, NDIC acting Managing Director and CEO, Emily Osuji, emphasized that ongoing legal hurdles have often delayed the resolution of failed banks.
While highlighting the NDIC’s landmark feat in making timely payments of insured and uninsured depositors of the defunct Heritage Bank, Osuji noted that court proceedings have, in some instances, restricted the agency’s ability to fulfil its mandate.
In her welcome address, Osuji pointed out that prolonged litigation, improper garnishee orders, and enforcement measures against NDIC assets have posed significant challenges. “The Corporation still faces legal hurdles such as lengthy proceedings, execution of judgments against its assets for liabilities of liquidated banks, and court orders that impede its core duties, including reimbursing insured depositors and acting as a liquidator.”
She called for ongoing engagement with the judiciary, highlighting its role in upholding the integrity of Nigeria’s deposit insurance system and ensuring that failed bank resolutions proceed without undue delays.
“The Corporation has strengthened its public awareness initiatives and frequently engages with the judiciary as a critical stakeholder. This is vital in achieving its mandate in line with the Core Principles of Deposit Insurers set out by the International Association of Deposit Insurers (IADI),” Osuji stated.
In her remarks, Chief Justice of Nigeria Kudirat Kekere-Ekun, represented by Hon. Justice John Okoro, emphasized the seminar’s significance in equipping judges with the knowledge required for fair and efficient adjudication of financial disputes.
“The financial sector is the backbone of any nation’s economy. A stable and resilient financial system is pivotal to economic prosperity, and an effective deposit insurance mechanism is central to that stability. The theme of this seminar aptly captures the urgent need for judges to be well-prepared in adjudicating deposit insurance matters. Our role in ensuring fair, timely, and legally sound resolutions is vital,” Kekere‑Ekun said.
The CJN further highlighted the emergence of fintech and digital finance as new pressure points for the judiciary. She urged judges to be forward-thinking in addressing the complexities posed by decentralised finance and its implications for deposit insurance regulations.
