NDIC Seeks Judicial Aid

The Nigeria Deposit Insurance Corporation (NDIC) has called for stronger collaboration with
the nation’s judiciary to address ongoing legal challenges, including prolonged litigations and
court orders limiting its mandate.
The appeal was made during a sensitisation seminar for Federal High Court judges held in
Lagos on Monday. The NDIC emphasized that closer cooperation with the National Judicial
Institute would improve depositor protection and help maintain stability in Nigeria’s banking
sector.
At the seminar, Acting Managing Director/Chief Executive of the NDIC, Mrs. Emily Osuji,
acknowledged that the Corporation still faces legal hurdles that delay the swift resolution of
failed banks, despite significant achievements such as the prompt closure of Heritage Bank.
Addressing the theme, “Strengthening Adjudication and Depositor Confidence in the Banking
System,” Osuji commended the judiciary for its ongoing support while pointing out persistent
challenges such as lengthy litigation, improper garnishee orders, and enforcement actions
targeting NDIC assets.
Osuji explained, “The Corporation still faces legal obstacles, including prolonged court cases
and enforcement of judgments against its assets for bank liquidation liabilities. The recent
Heritage Bank liquidation cases have highlighted the application of Section 69 of the NDIC
Act 2023, which limits courts from issuing certain orders against the NDIC while it performs
its core duties, like reimbursing insured deposits or acting as liquidator. This section also
mandates that claimants with disputes against the NDIC in these matters can only seek
monetary compensation, capped at amounts such as the insured deposit for depositors or
the nominal share value for shareholders.”
Nevertheless, the Corporation’s execution of these responsibilities has occasionally been
obstructed by court orders. Moreover, legal actions have been initiated against failed insured
institutions and the NDIC without obtaining the necessary court permission, contrary to the
law. Similarly, courts have allowed enforcement measures, including garnishee orders and
asset seizures, against the NDIC and the assets of failed insured institutions.
She further urged ongoing collaboration with the judiciary to protect the integrity of the
deposit insurance system and prevent unnecessary legal delays in resolving failed banks.
Representing the Chief Justice of Nigeria, Kudirat Kekere-Ekun, Justice Inyang Okoro,
Chairman of the Education Committee of the NJI Board of Governors, emphasized the
seminar’s significance, stating that it plays a crucial role in providing judges with the skills
needed to fairly and effectively resolve financial disputes.