Judicial officers across the federation have been warned by Justice Walter Onnoghen, the Chief Justice of Nigeria, CJN, to be circumspect while adjudicating over disputes relating to depositors’ funds.
The CJN, who spoke at a one-day sensitization seminar the Nigeria Deposit Insurance Corporation, NDIC, organised for High Court Judges, said the efficiency, satisfaction and success of the sector could only be measured by the level of public confidence and assurance that deposits and investments are safe and secure.
He said the seminar was meant to expose the Judiciary to the evolving processes of dispute resolution between banks and depositors, as well as to deliberate on the measures adopted by regulators in the sector, adding there was urgent need for legal and policy reforms in the banking sector.
Onnoghen said: “As we all know, the banking sector remains an ever present and enduring necessity to all Nigerians.
“As such, the need for legal and policy reform in this sector cannot be overemphasised and must continue to occupy our utmost participation and attention as judges.
“It is, therefore, commendable that regulators in the banking sector, such as the Nigeria Deposit Insurance Corporation, NDIC, recognise the role which the Judiciary plays in ensuring financial system stability as this is the fulcrum for economic growth and development.
“Thus, the efficiency, satisfaction and success of the sector can be measured by the level of public confidence and assurance that deposits and investments are safe and secure.
“My Lords, I must not hesitate to emphasise at this forum, the need for Judges to be circumspect while adjudicating over disputes relating to depositors’ funds.
“The Judiciary, as an arbiter has an important role to play, by ensuring speedy resolution of disputes.
“As we all know, the speedy resolution of financial disputes is an economic development catalyst, as investors and other financial institutions will remain confident that their investments are safe.
“It is a known fact that banking all over the world is regulated by a set of laws, rules and regulations peculiar to each jurisdiction and it goes without saying that a depositor, as well as other investors, must be assured of the protection of their assets and investments in the event of bank distress.
“I must unequivocally posit that the principal objective of a deposit insurance system is to contribute to the sustainability and stability of the financial system of every economy while protecting depositors by creating a safety net in the event of bank failure.
“A sound, competitive banking system is therefore critical to a nation’s economic vitality. Banks have traditionally performed the important function of intermediating between lenders and borrowers by providing a liquid savings vehicle for small and large investors alike.
“By developing specialised skills to evaluate and diversify the risks of their borrowers, banks have played an important role in aiding economic growth. This is why this seminar affords stakeholders the opportunity to dialogue on salient issues related to the sector especially with regard to the statutory guarantee provided for depositors.
“In ensuring the continuous success of the collaborative effort between the National Judicial Institute and the Nigeria Deposit Insurance Corporation, this seminar features on the annual calendar of training programmes of the Institute. This is with a view to sustain public confidence in the Judiciary.
“Let me assure you that the Judiciary, on its own part, will assiduously ensure that disputes are resolved in line with sacrosanct constitutional and statutory provisions”.
In her welcome remarks, Justice R.P.I. Bozimo, Administrator of the National Judicial Institute, NJI, said the seminar was relevant in view of recent and burgeoning developments in Nigeria’s banking sector.
Justice Bozimo described the country’s banking sector as a dynamic one, saying there was need for judges to be in tune with current and emerging practices in the sector.
In his keynote address, Alhaji Umaru Ibrahim, the Managing Director of the NDIC, said the establishment decided to collaborate with the judiciary as part of its effort to reposition the corporation for operational excellence and to achieve its vision of becoming the leading deposit insurer in the world by the year 2020.
