The Nigeria Deposit Insurance Corporation (NDIC) has applauded the judiciary for its enhanced comprehension of deposit insurance practices, a development that is expected to bolster the stability of the nation’s financial system.
Mr. Bello Hassan, the Managing Director/Chief Executive of NDIC, extended this commendation during his opening address at the 2023 Sensitization Seminar, a collaborative effort between the Corporation and the National Judicial Institute (NJI).
The seminar was specifically tailored for Judges of the Federal High Courts and revolved around the theme: “Strengthening Depositors Confidence in Banks and Other Financial Institutions through Speedy Dispensation of Justice.”
Hassan underscored the overarching goal of the Deposit Insurance Scheme in Nigeria, emphasizing that its primary mission is to safeguard depositors in the event of insured institutions’ failure. This, in turn, aims to instill confidence among depositors and curtail the occurrence of bank runs within the financial system.
The NDIC’s top executive recognized the indispensable role of the judiciary in the Corporation’s efficient execution of its mandate. He pointed out that the judiciary plays a critical role in resolving disputes that frequently arise from processes like the revocation of banking licenses, liquidation of failed banks, and the termination of liquidation activities.
While acknowledging that the NDIC has grappled with various challenges since its inception, including misconceptions regarding its mandate and the fundamental principles of Deposit Insurance, Mr. Hassan expressed gratitude that the seminar organized in conjunction with the NJI has yielded a better understanding of the Corporation’s distinct roles among members of the legal community and the judiciary.
This newfound comprehension, he asserted, will lead to the expedited resolution of cases involving banks in liquidation, ultimately contributing to the stability of Nigeria’s financial system.
To further enhance awareness of Deposit Insurance practices and related laws, Hassan disclosed that previous editions of this annual seminar have resulted in the publication of papers compiled by the Corporation.
These papers have been consolidated into two volumes, entitled “Law and Practice of Deposit Insurance in Nigeria,” and are meant to serve as a valuable reference for stakeholders. Importantly, these publications are being disseminated free of charge to stakeholders within the financial industry.
The collaborative efforts of the NDIC and the National Judicial Institute underscore the importance of a well-informed judiciary in upholding the stability of Nigeria’s financial system and safeguarding the interests of depositors. As the legal community gains a deeper understanding of deposit insurance practices, it is anticipated that the financial landscape in Nigeria will become more resilient and secure.
