The Nigerian Deposit Insurance Corporation has partnered with the National Judicial Institute to strengthen judicial capacity in handling complex banking sector disputes, particularly those relating to failed banks and depositor protection.
The collaboration was formalised at a training seminar for Justices of the Court of Appeal held in Lagos, with the theme, “Enhancing the Efficacy of Bank Liquidation and Depositors’ Protection.”
Speaking at the event, the Administrator of the NJI, Babatunde Adejumo, said the initiative was aimed at deepening synergy between the judiciary and financial regulators to safeguard the nation’s financial system.
He stressed that the stability of financial institutions remains critical to economic growth, noting that public confidence in the banking system depends not only on sound financial practices but also on the credibility of legal processes.
Adejumo warned that the collapse of banks often triggers far-reaching consequences for depositors, creditors, businesses and the broader economy, adding that liquidation cases are usually fraught with complex legal and regulatory issues, including creditor hierarchy, depositor reimbursement and asset recovery.
In his remarks, the Managing Director/Chief Executive Officer of the NDIC, Thompson Oludare Sunday, represented by the Executive Director, Corporate Services, Emily Osuji, said effective resolution of failed banks hinges on timely and consistent judicial decisions.
He noted that bank liquidation in Nigeria has become increasingly challenging due to hidden assets, weak collateral frameworks, competing creditor claims and the growing sophistication of financial transactions.
According to him, the NDIC frequently handles disputes involving depositors, creditors, former employees and other stakeholders over entitlements, contractual obligations and asset recovery.
Sunday cautioned that prolonged litigation could stall liquidation processes and erode public trust in the banking system, emphasising the need for continuous engagement between regulators and the judiciary as financial systems evolve.
He expressed optimism that enhanced judicial understanding would reduce delays, limit conflicting judgments and ultimately strengthen confidence in Nigeria’s financial sector.
The NDIC boss also referenced global best practices by institutions such as the Basel Committee on Banking Supervision and the International Association of Deposit Insurers, which underscore the importance of efficient legal systems in resolving financial disputes.
Also speaking, the President of the Court of Appeal, Monica Dongban-Mensem, represented by Ali Abubakar Banandi, described the seminar as a strategic effort to enhance judicial competence in banking and commercial litigation.
Banandi noted that previous engagements between the judiciary, the NDIC and the NJI had positively influenced court decisions in financial matters.
The corporation added that similar training programmes would be extended to judges of the Federal High Court, the National Industrial Court and the Investment and Securities Tribunal as part of efforts to deepen reforms in the financial adjudication process.
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