The National Judicial Institute (NJI) and the Nigeria Deposit Insurance Corporation (NDIC) on Monday held a sensitisation seminar for Justices of the Court of Appeal in Lagos to strengthen judicial capacity in bank liquidation matters and enhance depositor protection within Nigeria’s financial system.
The seminar, held in Lekki, Lagos, was themed “Enhancing the Efficacy of Bank Liquidation and Depositors’ Protection.” It focused on improving judicial responses to disputes involving failed banks and ensuring court decisions support financial stability and public confidence in the banking sector.
Speaking at the event, the Administrator of the NJI, Justice Babatunde Adejumo, said the programme was designed to equip appellate justices with deeper knowledge of the legal and technical issues surrounding bank liquidation.
According to him, confidence remains the foundation of every banking system, warning that the loss of depositors’ funds due to bank failures damages the country’s image and discourages investment in financial institutions.
Adejumo stressed the importance of judges understanding both the legal framework and operational realities of the banking sector when handling financial disputes.
He also noted that continuous workshops and seminars remain necessary to keep judicial officers updated on evolving financial regulations and challenges facing institutions such as the NDIC.
The NJI administrator said the long-standing collaboration between the institute and the NDIC had continued to produce positive outcomes, expressing confidence that the latest engagement would further improve judicial decision-making in financial disputes.
Addressing concerns over public perception of the judiciary, Adejumo said criticism of the courts is often influenced by personal interests and limited understanding of judicial processes.
He explained that delays in the justice system are largely due to the overwhelming number of cases before judges, noting that the pressure on courts is often misunderstood by the public.
While acknowledging instances of misconduct among some judicial officers, he maintained that such cases do not define the institution, adding that the National Judicial Council continues to sanction erring judges.
Adejumo also urged journalists to report judicial proceedings responsibly by verifying facts and presenting balanced interpretations of court judgments.
In her keynote address, the President of the Court of Appeal, Justice Monica Dongban-Mensem, commended the NJI and NDIC for organising the seminar aimed at strengthening judicial understanding of cases involving financial institutions.
Represented by Justice Ali Gumel, Dongban-Mensem described the programme as an important collaborative effort that would further enhance judicial decision-making in financial sector disputes.
Justice Gumel noted that similar engagements between the judiciary and financial institutions had over time improved judges’ understanding of the peculiarities surrounding banking and financial disputes.
He also expressed confidence in the quality of the guest speakers and discussants participating in the seminar.
Also speaking at the event, the Managing Director and Chief Executive Officer of the NDIC, Thompson Sunday, said effective bank liquidation processes depend heavily on timely and well-reasoned judicial decisions.
Represented by the Executive Director, Corporate Services, Emily Osuji, Sunday stated that the seminar formed part of the corporation’s strategy to strengthen collaboration with the judiciary, particularly the appellate court.
He explained that the NDIC’s responsibilities include deposit guarantees, banking supervision, distress resolution, and liquidation of failed banks following licence revocations by the Central Bank of Nigeria.
According to him, the successful execution of these mandates depends on clear, consistent, and timely judicial pronouncements, especially at the appellate level.
Sunday highlighted the complexities involved in bank liquidation, including hidden assets, poorly collateralised loans, and competing claims from depositors, creditors, and former employees.
He said the evolving nature of financial transactions and regulatory systems makes sustained dialogue between the NDIC and the judiciary increasingly important.
The NDIC boss added that the seminar was designed to deepen judicial understanding of the corporation’s statutory mandate, liquidation procedures, and depositor reimbursement frameworks.
He noted that improved understanding of these processes would help reduce delays, minimise conflicting judgments, and strengthen public confidence in Nigeria’s banking system.
Sunday also referenced global best practices established by the Basel Committee on Banking Supervision and the International Association of Deposit Insurers, which emphasise the importance of a strong legal framework backed by an independent and efficient judiciary.
