The Nigeria Deposit Insurance Corporation (NDIC) has stated that a limited understanding and the widespread misconception of the Deposit Insurance System (DIS) in Nigeria was largely responsible for the pool of unclaimed deposits following bank closures.
Omolola Abiola-Edewor, executive director (corporate services) of NDIC, stated this while delivering a keynote address at the opening of the 2020 sensitisation seminar for judges of the Federal High Court in Abuja with the theme: ‘ The challenges to deposit insurance law and practice in Nigeria.’
According to Abiola-Edewor, this phenomenon has informed the concerted efforts by NDIC to continuously collaborate with the Judiciary and other stakeholders in promoting sound knowledge and understanding of the deposit insurance system over the years.
Abiola-Edewor, who observed that the situation was a global challenge to deposit insurance system, commended the active collaboration by the judges of the Federal High Court and the National Judicial Institute in the last nine years. She said the NDIC would continue to guard the relationship with the judiciary. She added that the current economic situation occasioned by Covid-19 has further underscored the need to strengthen the collaboration towards enhancing the stability of the financial system.
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While describing judgments against the NDIC for liabilities of failed banks under liquidation as another challenge confronting the corporation, the executive director noted that effective resolution of legal issues affecting the administration of the deposit insurance system was critical to the enhancement of safety and soundness of the banking system. She said the corporation would be looking forward to drawing from the experience of the judges on ways of addressing these challenges.
The chief judge of the Federal High Court, John Tsoho noted that the seminar had gone a long way in broadening the knowledge of judges, not only in deposit insurance law and practice but also in the workings and operations of the financial system.
He assured this had enhanced the discharge of the judges’ duties in the last nine years that the seminar was initiated.
