NDIC and the National Judicial Institute hold a Lagos training for Court of Appeal justices on bank liquidation and depositor protection.

The Nigerian Deposit Insurance Corporation has partnered with the National Judicial Institute to organise a training seminar on banking sector litigation for Justices of the Court of Appeal in Lagos.. The seminar, themed “Enhancing the Efficacy of Bank Liquidation and Depositors’ Protection,” was designed to improve judicial understanding of bank liquidation procedures, depositor protection, and the increasing complexities associated with financial sector disputes in Nigeria.. Speaking at the opening of the programme, the Administrator of

the NJI, Babatunde Adejumo, said the initiative underscored the need for stronger collaboration between the judiciary and financial regulators.. According to him, the stability of financial institutions is critical to national economic growth because banking systems depend largely on public confidence in both financial institutions and the legal processes guiding their operations.. He noted that the collapse or distress of financial institutions often has wide-ranging consequences for depositors, creditors, businesses, and the economy at large..

Adejumo further explained that bank liquidation matters usually involve complicated legal and regulatory issues, including creditor priorities, depositor reimbursement, statutory powers, and asset recovery processes.. In his welcome address, the Managing Director and Chief Executive Officer of the NDIC, Thompson Oludare Sunday, represented by the corporation’s Executive Director, Corporate Services, Emily Osuji, stated that effective resolution of failed banks depends significantly on timely and consistent judicial decisions.. He observed that the liquidation of failed banks

in Nigeria has become more challenging due to hidden assets, weak collateral arrangements, competing creditor claims, and increasingly sophisticated financial transactions.. According to him, the NDIC frequently deals with disputes involving depositors, creditors, former employees, and other stakeholders over issues such as entitlements, contractual obligations, creditor hierarchy, and asset recovery.. He warned that prolonged litigation could delay liquidation proceedings and weaken public confidence in the banking system.. Sunday stressed the importance of sustained engagement between

the judiciary and financial regulators as financial transactions and regulatory frameworks continue to evolve.. He expressed confidence that improved judicial understanding of these processes would reduce delays, minimise conflicting judgments, and strengthen confidence in Nigeria’s banking and financial system.. He also referenced international standards set by the Basel Committee on Banking Supervision and the International Association of Deposit Insurers, which emphasise the role of efficient legal systems and independent judiciaries in resolving financial disputes.. The

President of the Court of Appeal, Monica Dongban-Mensem, represented by Ali Abubakar Banandi, described the seminar as an important institutional collaboration aimed at improving judicial understanding of disputes involving financial institutions.. Banandi noted that previous engagements involving the judiciary, the NDIC, and the NJI had positively influenced judicial decision-making in banking and commercial matters.. The NDIC disclosed that similar sensitisation programmes would also be organised for judges of the Federal High Court, the National Industrial

Court, and the Investment and Securities Tribunal later in the week.. He observed that the liquidation of failed banks in Nigeria has become more challenging due to hidden assets, weak collateral arrangements, competing creditor claims, and increasingly sophisticated financial transactions.. According to him, the NDIC frequently deals with disputes involving depositors, creditors, former employees, and other stakeholders over issues such as entitlements, contractual obligations, creditor hierarchy, and asset recovery.. He warned that prolonged litigation could

delay liquidation proceedings and weaken public confidence in the banking system.. Sunday stressed the importance of sustained engagement between the judiciary and financial regulators as financial transactions and regulatory frameworks continue to evolve.. He expressed confidence that improved judicial understanding of these processes would reduce delays, minimise conflicting judgments, and strengthen confidence in Nigeria’s banking and financial system.. He also referenced international standards set by the Basel Committee on Banking Supervision and the International Association

of Deposit Insurers, which emphasise the role of efficient legal systems and independent judiciaries in resolving financial disputes.. The President of the Court of Appeal, Monica Dongban-Mensem, represented by Ali Abubakar Banandi, described the seminar as an important institutional collaboration aimed at improving judicial understanding of disputes involving financial institutions.. Banandi noted that previous engagements involving the judiciary, the NDIC, and the NJI had positively influenced judicial decision-making in banking and commercial matters.. The NDIC

disclosed that similar sensitisation programmes would also be organised for judges of the Federal High Court, the National Industrial Court, and the Investment and Securities Tribunal later in the week.

NDIC, National Judicial Institute, Court of Appeal, bank liquidation, depositor protection, banking sector litigation, Lagos