NDIC Deepens Collaboration with Judges to Enhance Banking Sector Stability
Oru Leonard
The Nigeria Deposit Insurance Corporation (NDIC) has deepened its engagement with judges of the Federal High Court, National Industrial Court of Nigeria, and members of the Investment and Securities Tribunal (IST) to promote deposit insurance awareness and ensure faster judicial resolution of banking sector cases. This move is part of a sensitization seminar organized by the NDIC in Lagos, aimed at equipping judicial officers with the knowledge required to effectively adjudicate deposit insurance-related matters.
The seminar, themed “Strengthening Adjudication and Depositor Confidence in the Banking System,” highlights the critical role of deposit insurance systems in stabilizing banking systems and protecting depositors from losses in the event of bank failures.
Emily Osuji, acting Managing Director/Chief Executive of NDIC, while speaking, said the growing global reliance on deposit insurance systems highlights their critical role in stabilising banking systems and protecting depositors from losses in the event of bank failures.
She explained that the NDIC was established as a risk minimiser, with powers to monitor the health of insured financial institutions through off-site surveillance and on-site examination, in collaboration with the Central Bank of Nigeria (CBN) and other financial safety-net participants.
She further said the NDIC and CBN have recorded notable achievements, particularly in the seamless and orderly resolution of Heritage Bank, reflecting their dedication to excellence and stakeholder protection.
“Despite these achievements, the NDIC faces ongoing legal challenges, including prolonged judicial processes and enforcement of judgments against NDIC assets for liabilities incurred by banks in liquidation”, she lamented.
In her remarks, Justice Kudirat Kekere-Ekun, Chief Justice of Nigeria said the knowledge shared during the engagement would help strengthen adjudication processes, bolster depositor confidence, and enhance the broader stability of Nigeria’s banking system.
Represented by Justice John Inyang Okoro, Chairman of the Education Committee, Board of Governors of the National Judicial Institute (NJI), she stressed that the complexity of banking-related litigation including insolvency and regulatory cases demands a judiciary well-grounded in financial law and deposit insurance principles.
She said, “The courts serve as the final arbiters in financial disputes, and as such, our role in ensuring fair, timely, and legally sound resolutions cannot be compromised. The complexities associated with banking litigation—ranging from insolvency proceedings to regulatory interventions—demand a judiciary that is well-versed in the nuances of financial laws and deposit insurance policies.”
Also speaking, Salisu Garba Abdullahi, administrator of the National Judicial Institute, underscored that depositor confidence is the foundation of a thriving banking system, and judicial rulings play a pivotal role in reinforcing that trust.
He noted that court decisions on deposit insurance and financial matters set critical legal precedents that influence regulatory policies, enhance investor protection, and promote institutional stability.
“A major focus over the next few days will be identifying strategies to strengthen deposit insurance mechanisms and streamline judicial responses to financial instability,” he said.
Abdullahi stressed that judicial officers must not only grasp the technical aspects of financial laws but also understand their broader implications on economic stability and systemic trust.
The NDIC’s efforts to strengthen ties with judges aim to enhance the stability of Nigeria’s banking system by²:
– *Improving Adjudication Processes*: Equipping judicial officers with knowledge of financial laws and deposit
Credit: This Day
