On the previous day, the Nigeria Deposit Insurance Corporation (NDIC) pointed out that lengthy judicial processes and the enforcement of rulings concerning the corporation’s assets in cases involving banks undergoing liquidation pose significant challenges to its ability to fulfill its responsibilities.
This was stated by Mrs. Emily Osuji, who is the Acting Managing Director/Chief Executive, in Lagos at a sensitisation seminar for judges of the Federal High Court on the theme “Strengthening Adjudication and Depositor Confidence in the Banking System,” organised together with the National Judicial Institute.
Her remarks came on the heels of those made by Nigeria’s Chief Justice, Kudirat Kekere-Ekun, who advocated for a sound judicial approach to banking and financial adjudication. Such an approach, she said, fosters trust in the system and reassures depositors that their assets are protected while reinforcing the integrity of the financial regulatory apparatus.
The CBN and NDIC have achieved significant successes, especially in the methodical and effective closure of Heritage Bank, as noted by the acting MD.
She noted, however, that despite the aforementioned accomplishments, the corporation continues to confront certain legal challenges, including protracted judicial processes and the enforcement of rulings against the corporation’s assets due to banks in liquidation.
She stated, “The recent actions regarding the liquidation of Heritage Bank have provided chances to witness the implementation of the NDIC Act 2023, especially Section 69 of the act, which prohibits the court from issuing specific orders against the NDIC while it is carrying out its essential duties, such as reimbursing insured deposits or serving as a liquidator
In addition, legal actions are being considered against the NDIC and insured institutions that have failed, without proper authorization, despite legal provisions that forbid this. In a similar vein, the court allows enforcement measures like garnishee orders or attachments to be taken against the NDIC or the assets of failed insured institutions. ”
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