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NDIC, NJI partner on financial system stability

The Nigeria Deposit Insurance Corporation (NDIC) has partnered with the National Judicial Institute (NJI) to train judges of the Federal High Courts in deposit insurance practice towards promoting the stability of the nation’s financial system.

According to a statement by Bashir Nuhu, Director, Communication & Public Affairs, NDIC, the 2023 sensitisation seminar with the theme “Strengthening Depositors Confidence in Banks and Other Financial Institutions through Speedy Dispensation of Justice”, was held in Uyo, Akwa Ibom State, recently.

Speaking at the seminar, NDIC Managing Director and Chief Executive, Mr Bello Hassan, commended the judiciary on its better understanding of deposit insurance practice.

He stated that the overarching objective of the Deposit Insurance Scheme in Nigeria was to protect depositors in the event of failure of the insured institutions, thereby engendering confidence and curtailing the incidence of bank runs in the system.

He, however, noted that in carrying out its mandate efficiently, the corporation required effective collaboration with the judiciary in view of its critical role in resolving disputes that often arise from the revocation of banking licences, liquidation of failed banks, and the termination of liquidation activities.

The NDIC boss remarked that the corporation since inception had been confronted with many challenges such as misconception of its mandate and basic principles of Deposit Insurance.

He expressed gratitude that the seminar, organised in collaboration with the NJI, had resulted in a better understanding of the corporation’s distinct roles by members of the bar and the bench, as well as the speedy dispensation of cases involving banks in-liquidation for the sake of financial system stability in Nigeria.

“To deepen knowledge of deposit insurance practice and law, Hassan disclosed that papers presented at previous editions of the annual events have been published by the corporation under the title “Law and Practice of Deposit Insurance in Nigeria’’ in two volumes to serve as veritable reference material, adding that the publications are being distributed free of charge to our stakeholders,” the statement read in part.

Dayo Sunday

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