Nigeria: NDIC Applauds Judiciary for Grasping Deposit Insurance Practice

The Nigeria Deposit Insurance Corporation (NDIC) has expressed its appreciation for the judiciary’s growing understanding of deposit insurance practices, a development that contributes to the overall stability of the country’s financial system.

During the 2023 sensitization seminar held in Uyo, Akwa-Ibom State, and jointly organized by the NDIC in collaboration with the National Judicial Institute (NJI), NDIC’s Managing Director and Chief Executive, Mr. Bello Hassan, commended the judiciary’s deepening comprehension of deposit insurance matters. The seminar focused on the theme “Strengthening Depositors’ Confidence in Banks and Other Financial Institutions through Speedy Dispensation of Justice.”

Mr. Hassan highlighted that the primary objective of Nigeria’s deposit insurance scheme is to safeguard depositors in the event of financial institution failures, ultimately fostering confidence and mitigating the occurrence of bank runs within the system.

He emphasized that to fulfill its mandate effectively, the NDIC necessitates a strong partnership with the judiciary, given its pivotal role in addressing disputes arising from actions such as banking license revocations, the liquidation of failed banks, and termination of liquidation proceedings.

The NDIC has faced numerous challenges since its inception, including misconceptions regarding its mandate and the fundamental principles of deposit insurance. Mr. Hassan expressed his gratitude for the seminar, which was organized in collaboration with the judicial institute, as it has resulted in a clearer understanding of the NDIC’s distinct roles among legal professionals and judicial authorities. This understanding contributes to the expeditious resolution of cases involving banks in liquidation, further enhancing the stability of Nigeria’s financial system.

Mr. Hassan also revealed that to enhance awareness of deposit insurance practices and laws, the NDIC has published papers from previous editions of the annual seminar. These publications, compiled in two volumes under the title “Law and Practice of Deposit Insurance in Nigeria,” serve as valuable reference materials. He further noted that these publications are being distributed free of charge to stakeholders.