The Nigeria Deposit Insurance Corporation (NDIC) has appealed for greater judicial collaboration to address legal bottlenecks that hinder its mandate of safeguarding public confidence in the banking sector.
Acting Managing Director of the NDIC, Mrs Emily Osuji, made the appeal on Monday at the opening of a sensitisation seminar for judges of the Federal High Court, held in Ikeja. The seminar, jointly organised with the National Judicial Institute (NJI), centred on the theme: “Strengthening Adjudication and Depositor Confidence in the Banking System.”
Osuji explained that the initiative aimed to deepen cooperation and enhance the capacity of judges, acknowledging their critical role in adjudicating cases involving failed banks and ensuring stability within the financial system.
“The theme is particularly timely, reflecting international best practices on banking resilience and the protection of depositors from heavy losses in the event of bank failure,” she said.
She outlined the NDIC’s mandate, supervisory role, and achievements over the past 37 years, including the orderly resolution and closure of Heritage Bank. However, Osuji acknowledged that the Corporation still encounters significant legal challenges, notably protracted court proceedings and enforcement of judgements against the Corporation for liabilities of banks under liquidation.
Referencing the Heritage Bank case, she noted that ongoing legal interpretations of the NDIC Act 2023 and court injunctions had delayed resolution processes.
To address such challenges, Osuji said the Corporation had stepped up its public education efforts and regularly engages the judiciary to deepen mutual understanding of deposit insurance and regulatory expectations.
The Chief Justice of Nigeria, Justice Kudirat Kekere-Ekun, represented by Justice John Okoro, commended the NDIC’s commitment to continuous judicial engagement, describing the seminar as essential to keeping judges informed about new developments in the dynamic financial services landscape.
She emphasised that the increasing complexity of banking-related litigation demanded judicial officers who are knowledgeable in financial legislation and deposit insurance principles.
“Financial system stability is a shared responsibility, requiring collaboration among the judiciary, regulators, and policymakers,” she stated.
Justice Kekere-Ekun stressed that a strong deposit insurance framework is vital to protecting the financial system’s integrity, describing the banking sector as the lifeblood of the economy, driving investment, development, and growth.
She reiterated the need for synergy between the judiciary and financial institutions to reinforce public trust and ensure a well-functioning economic system.
Administrator of the National Judicial Institute, Justice Salisu Abdullahi, described the seminar as pivotal to fostering a resilient and transparent financial ecosystem built on sound legal foundations.
He reaffirmed the NJI’s commitment to ongoing judicial education, ensuring that judges at all levels are equipped to navigate complex financial disputes, interpret emerging regulations, and resolve cases with clarity and precision.
Justice Abdullahi encouraged participants to formulate practical strategies for strengthening deposit insurance mechanisms and streamlining judicial processes during periods of financial distress.
“The rise of digital banking, cryptocurrencies, and decentralised finance has transformed the financial landscape, requiring an agile judiciary capable of responding to new legal challenges,” he said.
Chief Judge of the Federal High Court, Justice John Tsoho, represented by Justice Binta Nyako, echoed similar concerns, identifying existing legal obstacles and commending the annual seminar for narrowing the knowledge gap in financial adjudication.
The event reinforced calls for an adaptive, well-informed judiciary that can support regulatory institutions in maintaining financial sector stability and public trust.
